FSL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.8
| Stock Code | FSL | Market Cap | 16,115 Cr. | Current Price | 228 ₹ | High / Low | 404 ₹ |
| Stock P/E | 34.3 | Book Value | 37.2 ₹ | Dividend Yield | 2.42 % | ROCE | 16.9 % |
| ROE | 15.3 % | Face Value | 10.0 ₹ | DMA 50 | 263 ₹ | DMA 200 | 315 ₹ |
| Chg in FII Hold | -0.05 % | Chg in DII Hold | 0.56 % | PAT Qtr | 144 Cr. | PAT Prev Qtr | 98.0 Cr. |
| RSI | 42.1 | MACD | -15.2 | Volume | 21,68,214 | Avg Vol 1Wk | 16,56,970 |
| Low price | 201 ₹ | High price | 404 ₹ | PEG Ratio | -88.0 | Debt to equity | 0.32 |
| 52w Index | 13.4 % | Qtr Profit Var | 39.8 % | EPS | 5.44 ₹ | Industry PE | 21.9 |
📉 Chart & Trend: FSL is trading at ₹228, below both its 50 DMA (₹263) and 200 DMA (₹315). This indicates short-term and medium-term weakness. The stock is in a downtrend with bearish bias.
📊 Momentum Indicators:
- RSI at 42.1 shows weak momentum, leaning towards oversold territory.
- MACD at -15.2 confirms bearish crossover and selling pressure.
- Bollinger Bands: Price is near the lower band, suggesting downside bias but no reversal yet.
- Volume is above average (21,68,214 vs 16,56,970), showing active participation, likely driven by selling pressure.
📈 Support & Resistance:
- Immediate support: ₹220–225 zone.
- Strong support: ₹201 (recent low).
- Resistance zones: ₹263 (50 DMA) and ₹315 (200 DMA).
- Optimal entry: ₹220–230 near support.
- Exit zone: ₹260–270 if rebound occurs.
🔎 Trend Status: The stock is consolidating with bearish bias, awaiting breakout above 50 DMA for reversal confirmation.
Positive
- EPS of ₹5.44 shows consistent earnings base.
- Dividend yield of 2.42% provides income support for investors.
- ROCE (16.9%) and ROE (15.3%) highlight decent capital efficiency.
- PAT improved to ₹144 Cr from ₹98 Cr, showing growth momentum.
Limitation
- Price below both 50 DMA and 200 DMA signals technical weakness.
- PEG ratio of -88.0 suggests distorted valuation relative to growth.
- Debt-to-equity ratio of 0.32 indicates moderate leverage risk.
Company Negative News
- FII holding decreased by -0.05%, showing reduced foreign investor confidence.
- Stock has corrected sharply from its 52-week high of ₹404.
Company Positive News
- DII holding increased by +0.56%, reflecting domestic institutional support.
- Quarterly profit growth of 39.8% highlights strong operational improvement.
Industry
- IT services and outsourcing sector benefits from global demand but faces margin pressures.
- Industry PE at 21.9 is lower than FSL’s PE (34.3), suggesting premium valuation compared to peers.
Conclusion
📌 FSL is technically weak, consolidating below key moving averages with bearish momentum. Entry is favorable around ₹220–230 with stop-loss below ₹215. Short-term rebound may target ₹260–270, but sustained breakout requires volume confirmation. Fundamentally steady with improving profits and dividend yield, but premium valuation and technical weakness limit immediate upside potential.
Would you like me to extend this into a peer benchmarking overlay against IT mid-cap peers like Coforge, Mphasis, and L&T Technology Services to highlight relative strength and sector rotation opportunities?