CANFINHOME - Technical Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Technical Rating: 2.7

Here’s a detailed technical analysis of CANFINHOME (Can Fin Homes Ltd.)

📉 Trend Overview

Current Price: ₹740 is below both 50-DMA (₹775) and 200-DMA (₹753) — confirming a short-term downtrend.

RSI (33.5): Near oversold territory, suggesting weak momentum but potential for a technical bounce.

MACD (-11.9): Negative and diverging, reinforcing bearish sentiment.

Volume: Significantly below average, indicating low conviction and lack of buying interest.

📌 Conclusion: The stock is reversing from its highs and currently in a corrective phase.

📈 Chart Patterns & Indicators

Bollinger Bands: Price is near the lower band, hinting at oversold conditions.

Candlestick Patterns: Recent long lower shadows suggest buying interest near ₹720–₹740, but not enough to reverse trend.

Support Levels

₹720 – ₹725 (recent swing low zone)

₹700 (psychological support)

₹558 (52-week low)

Resistance Levels

₹775 (50-DMA)

₹790 – ₹805 (Pivot R1–R2 zone)

₹952 (52-week high)

🎯 Entry & Exit Zones

Action Price Zone (₹) Rationale

Buy Entry 700 – 725 Near support, oversold RSI

Target 1 775 – 790 50-DMA resistance zone

Target 2 805 – 830 Monthly resistance zone

Stop Loss 685 Below key support and psychological level

🔍 Momentum Signals

Short-Term: Bearish, oversold RSI, weak MACD.

Medium-Term: Downtrend confirmed by moving averages.

Long-Term: Mixed fundamentals — high debt (6.92 D/E), moderate ROE (18.2%), and low PEG (0.51) suggest value but with caution.

🧭 Final Take

CANFINHOME is in a reversal phase, with oversold technicals and weak volume. A bounce from ₹700–₹725 is possible, but confirmation via MACD crossover and RSI recovery above 40 is needed. Risk-averse traders may wait for a close above ₹775 to consider trend reversal.

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