CANFINHOME - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.1

📈 Technical Analysis

• Chart Patterns: Stock is trading very close to its 52-week high (939 ₹), showing strong bullish momentum.
• Moving Averages: Current price (932 ₹) is above both 50 DMA (873 ₹) and 200 DMA (803 ₹), confirming an uptrend.
• RSI: At 64.6, RSI is moderately high, suggesting strong momentum but nearing overbought territory.
• MACD: Positive at 13.9, showing bullish crossover and upward momentum.
• Bollinger Bands: Price is near the upper band, signaling possible resistance and short-term consolidation.
• Volume Trends: Current volume (1,58,458) is slightly above 1-week average (1,46,193), confirming healthy participation.

🎯 Momentum & Trade Zones

• Support Levels: 873 ₹ (50 DMA), 803 ₹ (200 DMA), 800 ₹ (psychological support).
• Resistance Levels: 939 ₹ (52-week high), breakout above this may lead to 960–980 ₹ zone.
• Entry Zone: 910–930 ₹ (near support, favorable risk-reward).
• Exit Zone: 940–980 ₹ (near resistance/top band).
• Trend Status: Trending upward with strong bullish signals but mild consolidation risk near highs.

✅ Positive

• Price trading above both 50 DMA and 200 DMA.
• Quarterly PAT improved (251 Cr. vs 224 Cr.), showing earnings growth (+18.9%).
• EPS of 69.2 ₹ supports strong earnings visibility.
• FII holdings increased (+0.42%), showing foreign investor confidence.
• PEG ratio of 0.61 indicates attractive valuation relative to growth.

⚠️ Limitation

• High debt-to-equity ratio (6.61) indicates significant leverage risk.
• ROCE (9.34%) is modest compared to peers, reflecting average capital efficiency.
• DII holdings decreased (-0.65%), showing reduced domestic institutional support.
• RSI nearing overbought territory, suggesting caution near highs.

📉 Company Negative News

• DII holdings decreased, showing weaker domestic institutional sentiment.
• High leverage with debt-to-equity ratio at 6.61 raises risk concerns.

📊 Company Positive News

• Quarterly PAT growth of 18.9% shows strong operational performance.
• EPS of 69.2 ₹ highlights profitability and earnings strength.
• FII stake increased, boosting investor sentiment.

🏭 Industry

• Industry P/E at 18.0, slightly higher than Can Fin Homes’ P/E (13.4), suggesting undervaluation relative to peers.
• Housing finance sector benefiting from rising demand for affordable housing and government incentives.

📝 Conclusion

• Can Fin Homes is in a bullish trend, trading near its 52-week high with strong momentum.
• Fundamentals show earnings growth and attractive valuation, but high leverage remains a concern.
• Optimal strategy: Buy near support (910–930 ₹) and book profits near resistance (940–980 ₹).
• Short-term outlook: Trending upward with possible consolidation; long-term outlook remains positive if leverage is managed effectively.