FIVESTAR - Technical Analysis

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

Technical Rating: 2.6

Here’s a detailed technical analysis of Five-Star Business Finance Ltd (FIVESTAR) based on the data you provided and recent market indicators

📉 Trend Overview

Current Price (₹649) is well below both the 50 DMA (₹732) and 200 DMA (₹727), indicating a strong bearish trend.

RSI (25.5): Deep in the oversold zone, suggesting weak momentum but potential for a technical bounce.

MACD (-17.9): Strongly negative, confirming downward momentum.

Volume (37.68L) is significantly higher than the 1-week average (12.27L), indicating heavy selling pressure.

📌 Conclusion: The stock is currently reversing from a previous uptrend and showing signs of strong weakness.

📊 Momentum Signals

Bollinger Bands: Price likely near the lower band, reinforcing oversold conditions.

Support Zone: ₹620–₹640 (recent swing lows and psychological support)

Resistance Zone: ₹700–₹732 (near 50 DMA and previous breakdown level)

🎯 Entry & Exit Strategy

Action Price Range (₹) Rationale

Buy Entry 620–640 Oversold RSI, potential bounce

Target 1 700 Psychological resistance

Target 2 732 50 DMA resistance

Stop Loss 600 Below recent swing low

📌 Additional Insights

P/E (122): Extremely high, suggesting overvaluation.

PEG Ratio (0.97): Reasonable, but earnings growth may not justify current valuation.

Debt-to-equity (0.70): Moderate leverage—manageable but worth monitoring.

ROCE (17%) & ROE (16%): Solid returns, supportive of long-term fundamentals.

FII holding declined, while DII increased, indicating domestic optimism despite foreign caution.

Would you like me to compare this with other NBFCs like Aavas Financiers or Home First Finance? Or build a watchlist of oversold stocks with strong fundamentals?

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