CANFINHOME - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.1

📈 CANFINHOME is currently trending upward with strong short-term momentum. The stock is trading well above key moving averages, supported by a bullish MACD and elevated RSI, though nearing overbought territory.

📊 Technical Analysis Summary

• Trend Status: Trending upward
• RSI (70.4): Overbought — strong momentum, but risk of pullback
• MACD (25.3): Bullish crossover — confirms upward momentum
• Volume: Slightly below 1-week average — moderate conviction
• DMA 50 & 200: Price above both — confirms bullish structure
• Bollinger Bands: Price near upper band — momentum strong, but stretched

🎯 Entry & Exit Zones

• Support Levels: ₹830, ₹800, ₹768
• Resistance Levels: ₹875, ₹892, ₹910
• Optimal Entry: ₹830–₹845 (on dip)
• Exit Target: ₹892–₹910 (short-term resistance)

✅ Positive

• Price above 50 DMA and 200 DMA — confirms bullish trend
• MACD and RSI indicate strong momentum
• Quarterly PAT improved from ₹224 Cr to ₹251 Cr — 18.9% growth
• FII holding increased by 0.42% — foreign investor confidence
• PEG ratio of 0.57 — attractive valuation relative to growth

⚠️ Limitation

• RSI above 70 — overbought zone, risk of short-term correction
• Volume slightly below average — momentum may lack conviction
• Debt-to-equity ratio (6.61) — high leverage risk

📉 Company Negative News

• DII holding declined by 0.65% — domestic investor caution

📈 Company Positive News

• Strong quarterly earnings growth
• Stock up 91.2% from 52-week low — robust recovery

🏭 Industry

• Sector: Housing Finance / NBFC
• Industry P/E: 18.4 vs CANFINHOME’s P/E: 12.5 — relatively undervalued
• Sector outlook stable with rising demand for affordable housing and credit expansion

🧾 Conclusion

• CANFINHOME is in a bullish trend with strong technical indicators
• Entry near ₹830–₹845 with targets at ₹892–₹910
• Monitor RSI and volume for signs of continuation or exhaustion
• Valuation and earnings support long-term potential, but high debt levels warrant monitoring