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FSL - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.3

Last Updated Time : 03 Feb 26, 05:12 pm

Technical Rating: 3.3

Stock Code FSL Market Cap 21,564 Cr. Current Price 305 ₹ High / Low 404 ₹
Stock P/E 50.4 Book Value 37.2 ₹ Dividend Yield 1.30 % ROCE 16.9 %
ROE 15.3 % Face Value 10.0 ₹ DMA 50 332 ₹ DMA 200 341 ₹
Chg in FII Hold -0.05 % Chg in DII Hold 0.56 % PAT Qtr 98.0 Cr. PAT Prev Qtr 135 Cr.
RSI 38.6 MACD -6.38 Volume 3,57,409 Avg Vol 1Wk 3,74,921
Low price 270 ₹ High price 404 ₹ PEG Ratio -129 Debt to equity 0.32
52w Index 26.2 % Qtr Profit Var 6.74 % EPS 6.70 ₹ Industry PE 33.2

📈 Technical Analysis

  • Chart Patterns: Stock corrected from 404 ₹ highs and is consolidating near 305 ₹, showing weakness but holding above 270 ₹ support.
  • Moving Averages: Current price (305 ₹) is below both 50 DMA (332 ₹) and 200 DMA (341 ₹), confirming short-term bearishness.
  • RSI: At 38.6, the stock is close to oversold territory, suggesting potential for a rebound.
  • MACD: Negative (-6.38), indicating bearish momentum persists.
  • Bollinger Bands: Price is near the lower band, signaling oversold conditions but risk of breakdown.
  • Volume Trends: Current volume (3,57,409) is slightly below 1-week average (3,74,921), showing moderate participation.

📊 Momentum & Signals

  • Short-Term Momentum: Weak, but oversold RSI could trigger a bounce.
  • Support Zones: 300 ₹ (near-term), 270 ₹ (major support).
  • Resistance Zones: 332 ₹ (50 DMA), 341 ₹ (200 DMA), 360 ₹ (trendline resistance).
  • Entry Zone: 300–310 ₹ if RSI stabilizes.
  • Exit Zone: 332–341 ₹ on rebound; strict stop-loss below 300 ₹.
  • Trend Status: Stock is consolidating after correction, awaiting breakout direction.

✅ Positive

  • Strong ROCE (16.9 %) and ROE (15.3 %) highlight efficient capital use.
  • Dividend yield at 1.30 % provides income support.
  • EPS at 6.70 ₹ supports earnings visibility.
  • DII holdings increased (+0.56 %), showing domestic institutional support.

⚠️ Limitation

  • Stock trading below both 50 DMA and 200 DMA indicates weak technical strength.
  • High P/E (50.4) compared to industry PE (33.2) suggests premium valuation.
  • PEG ratio (-129) indicates valuation concerns relative to growth.
  • Current price far below 52-week high (404 ₹), showing significant correction.

📉 Company Negative News

  • Quarterly PAT declined (98 Cr. vs 135 Cr.), showing earnings pressure.
  • FII holdings decreased (-0.05 %), showing reduced foreign investor confidence.

📈 Company Positive News

  • DII holdings increased (+0.56 %), showing strong domestic institutional support.
  • Quarterly profit variance (+6.74 %) highlights year-on-year improvement despite sequential decline.

🏭 Industry

  • Industry PE at 33.2 is lower than company PE (50.4), suggesting FSL trades at a premium.
  • IT services and outsourcing sector outlook remains positive with global demand growth.

🔎 Conclusion

  • FSL is in a consolidation phase after correction, with oversold RSI and weak MACD.
  • Short-term traders may consider entry near 300–310 ₹ with exit around 332–341 ₹.
  • Long-term investors should be cautious due to premium valuations and declining profits, despite strong ROCE/ROE and sector growth potential.

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