FSL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.7

📊 Chart Patterns & Trend: FSL is trading right at its 50 DMA (347 ₹) and 200 DMA (346 ₹), showing indecision. Support lies around 340–345 ₹, while resistance is seen near 355–360 ₹. The stock is in a consolidation phase with mild bearish bias.

📈 Moving Averages: Current price (347 ₹) is aligned with both 50 DMA and 200 DMA, indicating sideways consolidation.

📉 RSI: At 47.0, RSI suggests neutral momentum, neither strongly oversold nor overbought.

📉 MACD: Negative (-2.39) reflects mild bearish momentum, signaling caution until a crossover occurs.

📊 Bollinger Bands: Price is near the mid-band, suggesting consolidation with limited volatility.

📊 Volume Trends: Current volume (3.81 lakh) is above the 1-week average (2.70 lakh), showing increased participation despite neutral momentum.

🎯 Entry Zone: 340–345 ₹ (near support and consolidation base)

🎯 Exit Zone: 355–360 ₹ (near resistance and upper consolidation band)

Positive

• Strong ROCE (16.9%) and ROE (15.3%) highlight efficient capital usage.
• Dividend yield at 1.16% provides income appeal.
• DII holdings increased by 0.68%, reflecting domestic institutional support.
• EPS at 6.70 ₹ shows steady profitability.

Limitation

• High P/E (57.3) compared to industry average (36.6) suggests overvaluation.
• PEG ratio (-147) indicates poor alignment between growth and valuation.
• Debt-to-equity ratio at 0.32 is moderate, but higher than debt-free peers.

Company Negative News

• FII holdings decreased by 0.33%, showing reduced foreign investor confidence.
• Quarterly PAT declined from 135 Cr. to 98 Cr., reflecting earnings pressure.

Company Positive News

• Quarterly profit variation at 6.74% shows modest growth despite recent decline.
• Strong institutional support from DII inflows.

Industry

• Industry P/E at 36.6 indicates sector is moderately valued compared to FSL’s higher valuation.
• IT and digital services demand expected to remain strong with global outsourcing trends.

Conclusion

⚖️ FSL is in a consolidation phase with mild bearish bias. Entry near 340–345 ₹ offers favorable risk-reward, while exits around 355–360 ₹ are optimal. Watch for MACD crossover and sustained volume strength to confirm a breakout from consolidation.