HDFCAMC - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.0

📊 Chart Patterns: HDFCAMC is trading near its 50 DMA (2,687 ₹) and above its 200 DMA (2,560 ₹), reflecting a bullish undertone but with short-term resistance. The price is mid-range between its 52-week low (1,763 ₹) and high (2,967 ₹), suggesting potential for further upside if momentum strengthens.

📈 Moving Averages:

- 50 DMA: 2,687 ₹ (near resistance)

- 200 DMA: 2,560 ₹ (support)

The stock is above the long-term average, confirming an uptrend, but struggling to decisively clear the 50 DMA.

📉 RSI: 57.5 → Neutral to bullish, not overbought, leaving room for further gains.

📉 MACD: -23.9 → Bearish crossover, showing short-term weakness despite overall bullish structure.

📊 Bollinger Bands: Price near mid-band, indicating consolidation with limited volatility.

📊 Volume Trends: Current volume (30.4 lakh) is significantly higher than 1-week average (13.2 lakh), showing strong participation and institutional activity.

🎯 Momentum Signals:

- Short-term bias: Neutral to mildly bullish with resistance overhead

- Entry Zone: 2,640–2,670 ₹ (near support levels)

- Exit Zone: 2,720–2,750 ₹ (near resistance)

- Breakout potential above 2,750 ₹ could target 2,850–2,900 ₹.

📌 Trend Status: Consolidating with bullish undertone. A decisive move above 2,687–2,750 ₹ is needed to confirm continuation of uptrend.

Positive

• Strong ROCE (43.3%) and ROE (32.4%) highlight excellent capital efficiency.
• Dividend yield of 1.64% provides shareholder returns.
• FII holdings increased (+2.51%), reflecting foreign investor confidence.
• Debt-free balance sheet ensures financial stability.

Limitation

• Stock P/E (41.8) is significantly higher than industry PE (28.5), suggesting premium valuation.
• MACD indicates short-term weakness despite overall bullish structure.
• DII holdings decreased (-2.26%), showing reduced domestic institutional support.
• Book value (181 ₹) is far below current price, suggesting stretched valuations.

Company Negative News

• Quarterly PAT declined slightly (718 Cr vs 748 Cr), showing earnings pressure.
• DII outflows (-2.26%) may weigh on sentiment.

Company Positive News

• Quarterly profit growth (+24.5% YoY) highlights strong operational performance.
• FII inflows (+2.51%) reflect renewed foreign investor interest.

Industry

• Industry PE: 28.5, lower than HDFCAMC’s PE of 41.8, suggesting overvaluation.
• Asset management sector remains resilient, supported by rising retail participation and long-term growth in financial markets.

Conclusion

⚖️ HDFCAMC is consolidating near its 50 DMA with bullish undertone but short-term resistance. Entry near 2,640–2,670 ₹ offers accumulation opportunity, while resistance lies at 2,720–2,750 ₹. A breakout above 2,750 ₹ could extend momentum towards 2,850–2,900 ₹. Investors may accumulate on dips for long-term growth, while traders should wait for confirmation above resistance.