CAMS - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.6

📈 CAMS is currently in a consolidating phase, with neutral-to-bullish momentum indicators and price hovering near short-term averages.

📊 Technical Overview

• Trend Status: Consolidating — price is moving sideways between support and resistance, with no clear breakout yet.
• Moving Averages: Price is slightly above 50 DMA (₹3,882) and just below 200 DMA (₹3,931), indicating indecision.
• RSI (55.5): Mid-range, suggesting balanced momentum with mild bullish bias.
• MACD (19.9): Positive crossover supports short-term upward momentum.
• Bollinger Bands: Price near mid-band, consistent with consolidation and low volatility.
• Volume: Below average (2.81L vs 7.13L), indicating cautious participation.

📌 Entry & Exit Zones

• Support Zone: ₹3,800–₹3,850 — ideal for entry on pullbacks.
• Resistance Zone: ₹3,950–₹4,000 — potential exit or partial profit booking zone.
• Breakout Level: ₹4,100 — crossing this could lead to retesting higher levels.

✅ Positive

• Strong ROCE (54.8%) and ROE (43.9%) reflect excellent capital efficiency.
• EPS of ₹89.0 and consistent dividend yield (1.56%).
• Low debt-to-equity ratio (0.07) supports financial stability.
• Positive MACD and RSI indicate short-term bullish potential.

⚠️ Limitation

• Price trading below 200 DMA and volume is significantly below average.
• High P/E (43.8) and PEG ratio (3.00) suggest valuation concerns.
• Quarterly profit variation of -3.71% indicates slight earnings pressure.

📰 Company Negative News

• Decline in FII holdings (-5.10%) may reflect foreign investor caution.

🌟 Company Positive News

• Stable quarterly PAT (₹111 Cr) and strong return ratios.
• Domestic institutions increasing stake (+3.45% DII change) shows long-term confidence.

🏭 Industry

• Operates in financial services and mutual fund infrastructure, a sector benefiting from rising retail participation.
• Industry P/E (54.7) is higher than the stock’s, suggesting potential undervaluation.

🧾 Conclusion

• CAMS is technically consolidating with mild bullish signals and strong fundamentals.
• Entry near ₹3,800–₹3,850 is favorable; watch for breakout above ₹4,100.
• Long-term investors may benefit from stability and earnings; short-term traders should monitor volume and resistance levels.