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FIVESTAR - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.7

Last Updated Time : 04 May 26, 11:56 am

Technical Rating: 3.7

Stock Code FIVESTAR Market Cap 14,155 Cr. Current Price 480 ₹ High / Low 828 ₹
Stock P/E 12.9 Book Value 250 ₹ Dividend Yield 0.42 % ROCE 14.8 %
ROE 16.1 % Face Value 1.00 ₹ DMA 50 442 ₹ DMA 200 523 ₹
Chg in FII Hold -4.47 % Chg in DII Hold 2.84 % PAT Qtr 269 Cr. PAT Prev Qtr 277 Cr.
RSI 59.4 MACD 27.4 Volume 10,43,990 Avg Vol 1Wk 21,89,828
Low price 338 ₹ High price 828 ₹ PEG Ratio 0.58 Debt to equity 1.11
52w Index 28.9 % Qtr Profit Var -3.53 % EPS 37.2 ₹ Industry PE 18.2

📈 Chart Patterns: Price is trading above the 50 DMA (442 ₹) but below the 200 DMA (523 ₹), showing short-term strength but medium-term weakness. Trendlines suggest resistance near 490–500 ₹ and support around 470–475 ₹.

📊 Moving Averages: Current price (480 ₹) above 50 DMA confirms short-term bullish bias, but below 200 DMA reflects longer-term caution.

📉 RSI: At 59.4, RSI is moderately strong, suggesting momentum but not yet overbought.

📊 MACD: Strongly positive at 27.4, confirming bullish crossover and momentum continuation.

📉 Bollinger Bands: Price near upper band, reflecting strong momentum but also risk of short-term pullback.

📊 Volume Trends: Current volume (10.4L) below 1-week average (21.9L), showing reduced participation despite price strength.

🎯 Momentum Signals: Bullish in the short term. MACD and moving averages confirm strength, though volume weakness and price below 200 DMA limit conviction.

💹 Entry Zone: 470–475 ₹ (support levels).

💹 Exit Zone: 490–500 ₹ (resistance levels).

📌 Trend Status: Consolidating with mild bullish bias.


Positive

  • EPS of 37.2 ₹ supports valuation strength.
  • ROE (16.1%) and ROCE (14.8%) highlight decent profitability.
  • PEG ratio of 0.58 suggests attractive valuation relative to growth.
  • DII holdings increased (+2.84%), showing strong domestic institutional support.

Limitation

  • Price below 200 DMA indicates medium-term weakness.
  • Debt-to-equity ratio at 1.11 shows moderate leverage risk.
  • Quarterly PAT declined (277 Cr. → 269 Cr.), highlighting earnings pressure.
  • Volume below average, limiting breakout confirmation.

Company Negative News

  • FII holdings reduced (-4.47%), showing weaker foreign investor confidence.
  • Sequential PAT decline highlights earnings pressure.

Company Positive News

  • DII support indicates strong domestic institutional optimism.
  • MACD momentum supports bullish technical outlook.
  • PEG ratio highlights attractive valuation relative to growth.

Industry

  • Industry PE at 18.2 is higher than FIVESTAR’s P/E (12.9), suggesting undervaluation.
  • NBFC sector supported by credit demand but exposed to interest rate cycles.

Conclusion

⚖️ FIVESTAR is consolidating with mild bullish bias, supported by MACD and short-term price strength above 50 DMA. Entry near 470–475 ₹ offers a favorable setup, with exits around 490–500 ₹. Long-term investors may hold confidently given attractive PEG ratio and decent profitability, but short-term traders should be cautious due to weak volume, declining PAT, and price below 200 DMA.

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