AWL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 2.8

📊 Chart Patterns & Trend: AWL is trading below both its 50 DMA (259 ₹) and 200 DMA (270 ₹), indicating weakness and a bearish undertone. Price action shows the stock consolidating near 240–250 ₹ after a steep correction from highs of 337 ₹, with support at 232 ₹.

📈 Moving Averages: Current price (245 ₹) is below both moving averages, signaling short-term and medium-term weakness.

📉 RSI: At 27.8, RSI is oversold, suggesting potential for a short-term bounce or accumulation.

📊 MACD: Negative MACD (-6.79) confirms bearish momentum, though oversold RSI may limit further downside.

📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions. A bounce is possible if buying interest emerges.

📊 Volume Trends: Current volume (8.84L) is below 1-week average (13.37L), showing weak participation and lack of conviction in recent moves.

🎯 Entry Zone: 235–245 ₹ (near support and oversold RSI).

🚪 Exit Zone: 260–270 ₹ (resistance near DMA levels).

⚠️ Stop Loss: 230 ₹ (below recent support).

📌 Overall Trend: Stock is consolidating near support with bearish bias. A reversal requires sustained move above 260 ₹ with strong volume.

Positive

• Strong ROCE (21%) and ROE (13.8%).
• Low debt-to-equity ratio (0.09).
• FII holding increased significantly (+9.50%).
• Quarterly PAT stable (225 Cr. → 229 Cr.).

Limitation

• Stock trading below both 50 DMA and 200 DMA.
• Weak volume participation, limiting breakout potential.
• Dividend yield of 0.00% offers no income cushion.
• PEG ratio of 2.14 indicates expensive valuation relative to growth.

Company Negative News

• DII holding reduced slightly (-0.20%).
• Quarterly profit variation of -29.7% shows inconsistency.
• Stock price under pressure near 52-week lows.

Company Positive News

• FII holding increased sharply (+9.50%).
• EPS of 7.85 ₹ indicates earnings stability.

Industry

• Industry PE at 26.3, slightly lower than AWL’s valuation.
• Sector remains competitive with moderate growth outlook.

Conclusion

⚖️ AWL is consolidating near strong support levels with oversold RSI suggesting potential rebound. Entry near 235–245 ₹ offers limited upside unless price breaks above 260 ₹ with strong volume. Fundamentally stable but technically weak, making cautious accumulation advisable.