CAMS - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.6

📊 Chart Patterns: CAMS is trading slightly below its 50 DMA (770 ₹) and 200 DMA (782 ₹), showing short-term weakness. Current price (758 ₹) is consolidating near support after a decline from highs (1,058 ₹).

📉 Moving Averages: Price < 50 DMA and < 200 DMA → bearish alignment. Sustaining above 770–782 ₹ would confirm strength.

📉 RSI: At 45.2, RSI is neutral-to-weak, suggesting limited buying strength but potential rebound near support.

📉 MACD: Negative (-8.43), confirming bearish crossover and weak short-term momentum.

📊 Bollinger Bands: Price near lower band, indicating oversold conditions and possible mean reversion.

📊 Volume Trends: Current volume (26,42,150) is significantly higher than 1-week average (11,09,771), showing strong activity, likely driven by selling pressure.

📍 Support & Resistance:

- Strong support: 740–750 ₹

- Major support: 606 ₹ (recent low)

- Immediate resistance: 770–782 ₹ (DMA levels)

- Major resistance: 820–850 ₹

🚦 Momentum Signals: Short-term momentum is weak but oversold. Entry zone: 740–760 ₹ near support. Exit zone: 780–820 ₹ if resistance is tested. Breakout above 850 ₹ would confirm reversal attempt.

🔄 Trend Status: The stock is consolidating with bearish bias, oversold but not yet reversing.

Positive

• Strong ROCE (54.8%) and ROE (43.9%) highlight excellent efficiency.
• Dividend yield of 1.61% provides income support.
• DII holdings increased (+3.45%), showing domestic institutional confidence.
• EPS of 17.8 ₹ supports valuation comfort.
• Debt-to-equity ratio of 0.06 indicates near debt-free status.

Limitation

• Stock trading below both 50 DMA and 200 DMA, showing weak technical strength.
• MACD negative, confirming bearish momentum.
• PEG ratio (2.92) suggests expensive valuation relative to growth.
• Quarterly profit variation (-3.71%) highlights earnings pressure.

Company Negative News

• FII holdings declined (-5.10%), showing reduced foreign investor confidence.
• Quarterly PAT declined slightly (111 Cr. vs 105 Cr.).

Company Positive News

• DII holdings increased (+3.45%), reflecting strong domestic institutional support.
• EPS remains stable at 17.8 ₹ despite profit decline.

Industry

• Industry PE at 53.3 is higher than CAMS’s PE (42.6), showing relative undervaluation.
• Financial services and registrar industry benefits from long-term growth in capital markets.

Conclusion

⚖️ CAMS is consolidating with bearish bias, trading below key moving averages but oversold on RSI. Entry near 740–760 ₹ could be considered for short-term rebound trades, with exit around 780–820 ₹. A breakout above 850 ₹ would confirm reversal. Strong fundamentals, high ROCE/ROE, and dividend yield support long-term holding, but near-term weakness due to declining profits and bearish technicals persists.