FSL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | FSL | Market Cap | 15,126 Cr. | Current Price | 214 ₹ | High / Low | 404 ₹ |
| Stock P/E | 32.2 | Book Value | 37.2 ₹ | Dividend Yield | 2.57 % | ROCE | 16.9 % |
| ROE | 15.3 % | Face Value | 10.0 ₹ | DMA 50 | 235 ₹ | DMA 200 | 292 ₹ |
| Chg in FII Hold | -0.35 % | Chg in DII Hold | 0.30 % | PAT Qtr | 144 Cr. | PAT Prev Qtr | 98.0 Cr. |
| RSI | 43.8 | MACD | -3.58 | Volume | 17,33,331 | Avg Vol 1Wk | 16,88,562 |
| Low price | 201 ₹ | High price | 404 ₹ | PEG Ratio | -82.6 | Debt to equity | 0.32 |
| 52w Index | 6.56 % | Qtr Profit Var | 39.8 % | EPS | 5.44 ₹ | Industry PE | 20.8 |
📈 Chart Patterns: Price is trading below both 50 DMA (235 ₹) and 200 DMA (292 ₹), showing weakness. Trendlines suggest support near 210–215 ₹ and resistance around 230–240 ₹.
📊 Moving Averages: Current price (214 ₹) below both DMAs indicates bearish undertone and lack of momentum strength.
📉 RSI: At 43.8, RSI is weak, leaning towards bearish sentiment.
📊 MACD: Negative at -3.58, confirming bearish crossover and short-term weakness.
📉 Bollinger Bands: Price near lower band, suggesting weakness but also potential for short-term rebound from oversold levels.
📊 Volume Trends: Current volume (17.3L) slightly above 1-week average (16.9L), showing steady participation despite weakness.
🎯 Momentum Signals: Bearish. MACD and RSI confirm weakness, though volume shows mild support near current levels.
💹 Entry Zone: 210–215 ₹ (support levels).
💹 Exit Zone: 230–240 ₹ (resistance levels).
📌 Trend Status: Consolidating with bearish bias.
Positive
- ROE (15.3%) and ROCE (16.9%) highlight decent profitability.
- Dividend yield of 2.57% provides shareholder returns.
- Debt-to-equity ratio at 0.32 shows manageable leverage.
- Quarterly PAT growth (144 Cr. vs 98 Cr.) indicates earnings improvement.
Limitation
- Price below both 50 DMA and 200 DMA indicates technical weakness.
- Negative MACD (-3.58) confirms bearish momentum.
- High P/E (32.2) compared to industry PE (20.8) suggests stretched valuation.
- PEG ratio (-82.6) highlights unsustainable growth expectations.
Company Negative News
- FII holdings reduced (-0.35%), showing weaker foreign investor confidence.
- Stock trading far below 200 DMA reflects medium-term weakness.
Company Positive News
- DII holdings increased (+0.30%), showing domestic institutional support.
- Quarterly PAT growth (+39.8%) highlights operational strength.
- Dividend yield adds shareholder value.
Industry
- Industry PE at 20.8 is lower than FSL’s P/E (32.2), suggesting overvaluation.
- IT services sector remains competitive with margin pressures.
Conclusion
⚖️ FSL is consolidating with bearish bias, reflected in negative MACD, weak RSI, and price below both DMAs. Fundamentals show decent profitability and dividend yield, but valuation concerns and technical weakness limit upside. Entry near 210–215 ₹ offers limited rebound potential toward 230–240 ₹. Long-term investors should remain cautious until momentum improves and valuations normalize.