FSL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | FSL | Market Cap | 18,669 Cr. | Current Price | 265 ₹ | High / Low | 404 ₹ |
| Stock P/E | 36.6 | Book Value | 32.5 ₹ | Dividend Yield | 2.08 % | ROCE | 21.2 % |
| ROE | 20.9 % | Face Value | 10.0 ₹ | DMA 50 | 244 ₹ | DMA 200 | 285 ₹ |
| Chg in FII Hold | -0.35 % | Chg in DII Hold | 0.30 % | PAT Qtr | 140 Cr. | PAT Prev Qtr | 144 Cr. |
| RSI | 58.9 | MACD | 10.9 | Volume | 28,16,437 | Avg Vol 1Wk | 47,33,514 |
| Low price | 201 ₹ | High price | 404 ₹ | PEG Ratio | 1.32 | Debt to equity | 0.42 |
| 52w Index | 31.5 % | Qtr Profit Var | 51.6 % | EPS | 6.11 ₹ | Industry PE | 22.7 |
Chart & Trend Analysis:
FSL is trading at ₹265, above its 50 DMA (₹244) but below its 200 DMA (₹285), showing short-term bullish momentum but medium-term resistance. RSI at 58.9 indicates healthy strength, while MACD at 10.9 confirms positive crossover. Bollinger Bands are moderately wide, suggesting consolidation with potential breakout. Current volume (28.1L) is lower than the weekly average (47.3L), showing reduced participation.
Momentum Signals:
- RSI near 59 signals bullish continuation.
- MACD positive, confirming momentum strength.
- Resistance zones: ₹270–275 (near-term), ₹285–290 (200 DMA).
- Support zones: ₹255–260 immediate, deeper support at ₹244 (50 DMA).
- Trend status: Consolidating with mild bullish bias; reversal possible if price sustains above 285.
Entry Zone: ₹255–260 (accumulation zone)
Exit Zone: ₹275–285 (profit booking zone)
Stop-Loss: Below ₹244
Positive
- Strong ROCE (21.2%) and ROE (20.9%) highlight efficient capital use.
- Dividend yield of 2.08% adds shareholder value.
- EPS at ₹6.11 supports earnings visibility.
- Price trading above 50 DMA confirms short-term bullishness.
Limitation
- Stock trading below 200 DMA indicates medium-term weakness.
- Volume participation below average, limiting momentum confirmation.
- Debt-to-equity ratio at 0.42 adds moderate financial risk.
Company Negative News
- Decline in FII holdings (-0.35%) shows reduced foreign investor confidence.
- Sequential PAT decline (₹140 Cr vs ₹144 Cr) highlights earnings pressure.
Company Positive News
- DII holdings increased (+0.30%), showing domestic institutional support.
- Quarterly profit variation (+51.6%) highlights strong year-on-year growth.
Industry
- Industry PE at 22.7 is lower than FSL’s P/E (36.6), suggesting premium valuation.
- IT services sector remains resilient with demand for digital transformation and outsourcing.
Conclusion
FSL is consolidating with mild bullish bias, trading above 50 DMA but below 200 DMA. Entry near ₹255–260 offers a favorable setup, with exits around ₹275–285. Fundamentals remain strong with high ROE and ROCE, but reduced volumes and medium-term resistance require cautious monitoring.
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