HDFCAMC - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.3

📈 Technical Analysis

• 📉 Chart Pattern: HDFCAMC is showing signs of short-term reversal, pulling back from its recent high of 5,934 ₹ and forming lower highs.
• 📉 Moving Averages: Price is below the 50-DMA (5,585 ₹) but above the 200-DMA (5,041 ₹), indicating medium-term strength but short-term weakness.
• 📉 RSI (37.9): Near oversold zone, suggesting weak momentum and potential for technical bounce.
• 📉 MACD (-56.7): Negative crossover, confirming bearish sentiment.
• 📉 Bollinger Bands: Price near lower band, indicating oversold conditions but no strong reversal signal yet.
• 📉 Volume Trend: Current volume (4.72L) is significantly below 1-week average (10.05L), reflecting weak participation and low conviction.

📍 Entry & Exit Zones

• ✅ Entry Zone: 5,250 ₹ – 5,350 ₹ (near support and psychological level)
• 🚪 Exit Zone: 5,600 ₹ – 5,700 ₹ (resistance from 50-DMA and prior swing highs)

📊 Trend Status

• 📉 Current Trend: Reversing from uptrend to short-term bearish
• ⚠️ Bias: Bearish unless RSI rebounds above 45 and MACD flattens

✅ Positive

• Strong ROCE (43.3%) and ROE (32.4%) reflect excellent capital efficiency.
• FII holding increased by 2.72%, indicating strong foreign investor confidence.
• PEG ratio (2.01) supports valuation relative to growth.
• Zero debt-to-equity ratio reflects financial prudence.

⚠️ Limitation

• Price trading below 50-DMA — weak short-term technical structure.
• MACD and RSI both reflect bearish momentum.
• Volume below average — rally may lack conviction.

📉 Company Negative News

• DII holding dropped by 2.53%, indicating reduced domestic institutional interest.
• Quarterly PAT declined from 748 Cr. to 718 Cr., showing mild earnings pressure.

📈 Company Positive News

• EPS of 128 ₹ and P/E of 42.1 are reasonable compared to industry PE (30.3).
• Quarterly profit variation improved by 24.5%, showing operational resilience.

🏭 Industry

• Asset management sector benefits from rising retail participation and long-term financialization trends.
• HDFCAMC trades above industry PE (42.1 vs 30.3), reflecting premium valuation and strong brand positioning.

🧾 Conclusion

• HDFCAMC is reversing with bearish technical indicators despite strong fundamentals and institutional support.
• Short-term traders may consider entries near 5,300 ₹ and exits near 5,650 ₹.
• Long-term investors should monitor technical recovery and volume strength before adding exposure.