CHOICEIN - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | CHOICEIN | Market Cap | 15,270 Cr. | Current Price | 684 ₹ | High / Low | 860 ₹ |
| Stock P/E | 3,000 | Book Value | 46.5 ₹ | Dividend Yield | 0.00 % | ROCE | 1.22 % |
| ROE | 0.66 % | Face Value | 10.0 ₹ | DMA 50 | 685 ₹ | DMA 200 | 711 ₹ |
| Chg in FII Hold | -0.75 % | Chg in DII Hold | 0.05 % | PAT Qtr | 3.58 Cr. | PAT Prev Qtr | 0.68 Cr. |
| RSI | 53.7 | MACD | -0.23 | Volume | 2,97,562 | Avg Vol 1Wk | 4,84,083 |
| Low price | 569 ₹ | High price | 860 ₹ | PEG Ratio | 98.3 | Debt to equity | 0.01 |
| 52w Index | 39.7 % | Qtr Profit Var | 191 % | EPS | 0.23 ₹ | Industry PE | 17.4 |
📊 Chart Patterns & Trend: CHOICEIN is consolidating after a decline from its 860 ₹ high. Current price (684 ₹) is near the 50 DMA (685 ₹) but below the 200 DMA (711 ₹), showing short-term neutrality with medium-term weakness. Support lies near 670–675 ₹, with resistance at 700–720 ₹. Trendlines suggest sideways consolidation with limited momentum.
📈 Moving Averages: Price aligned with 50 DMA but below 200 DMA, indicating consolidation with bearish undertone.
📉 RSI: At 53.7, RSI is neutral, showing balanced momentum without strong buying signals.
📉 MACD: Slightly negative (-0.23), confirming weak momentum.
📊 Bollinger Bands: Price is near the mid-band, suggesting consolidation with limited volatility.
📊 Volume Trends: Current volume (2,97,562) is below the 1-week average (4,84,083), showing reduced participation and lack of breakout strength.
💡 Momentum Signals: Neutral to bearish bias. A breakout above 700–720 ₹ could trigger upside toward 740–760 ₹, while breakdown below 670 ₹ risks further decline.
🎯 Entry Zone: 670–675 ₹ (support region).
🎯 Exit Zone: 700–720 ₹ (resistance region; extended target 740–760 ₹).
📌 Status: Consolidating with weak momentum.
Positive
✔ EPS of 0.23 ₹ shows profitability despite valuation concerns.
✔ Debt-to-equity ratio of 0.01 indicates negligible leverage.
✔ Quarterly PAT growth (3.58 Cr. vs 0.68 Cr.) highlights earnings improvement.
✔ 52w Index at 39.7% shows relative strength compared to peers.
Limitation
⚠ Extremely high P/E (3,000) compared to industry PE (17.4), suggesting severe overvaluation.
⚠ Weak ROCE (1.22%) and ROE (0.66%).
⚠ PEG ratio of 98.3 indicates poor growth prospects relative to valuation.
⚠ Volume below average, limiting breakout potential.
Company Negative News
⚠ FII holdings decreased (-0.75%), showing reduced foreign investor confidence.
⚠ Valuation metrics remain unsustainably high.
Company Positive News
✔ PAT growth of 191% highlights earnings recovery.
✔ DII holdings increased slightly (+0.05%), showing domestic support.
✔ Debt-free balance sheet adds financial stability.
Industry
🏦 Financial services sector remains competitive with moderate growth prospects.
📉 Industry PE (17.4) far lower than CHOICEIN’s P/E (3,000), highlighting valuation risks.
Conclusion
📌 CHOICEIN is consolidating near support with weak momentum. Entry around 670–675 ₹ offers limited risk-reward, while exits near 700–720 ₹ are prudent unless momentum strengthens toward 740–760 ₹. Long-term investors should be cautious of extreme valuation metrics, while traders may exploit short-term consolidation opportunities.
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