HDFCAMC - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | HDFCAMC | Market Cap | 1,04,970 Cr. | Current Price | 2,450 ₹ | High / Low | 2,967 ₹ |
| Stock P/E | 36.5 | Book Value | 181 ₹ | Dividend Yield | 1.83 % | ROCE | 43.3 % |
| ROE | 32.4 % | Face Value | 5.00 ₹ | DMA 50 | 2,601 ₹ | DMA 200 | 2,583 ₹ |
| Chg in FII Hold | -0.70 % | Chg in DII Hold | 0.77 % | PAT Qtr | 770 Cr. | PAT Prev Qtr | 718 Cr. |
| RSI | 42.0 | MACD | -74.8 | Volume | 12,70,419 | Avg Vol 1Wk | 13,59,043 |
| Low price | 1,763 ₹ | High price | 2,967 ₹ | PEG Ratio | 1.75 | Debt to equity | 0.00 |
| 52w Index | 57.1 % | Qtr Profit Var | 20.0 % | EPS | 67.2 ₹ | Industry PE | 27.5 |
📊 Chart & Trend Analysis: HDFCAMC is trading at ₹2,450, below both its 50 DMA (₹2,601) and 200 DMA (₹2,583), reflecting short-term weakness. RSI at 42 suggests the stock is nearing oversold territory but not yet extreme. MACD at -74.8 confirms bearish momentum. Bollinger Bands show price leaning toward the lower band, indicating selling pressure. Volume is slightly below average, showing reduced participation.
📈 Momentum Signals: Short-term momentum is weak, but RSI near 40 hints at a possible rebound if support holds. MACD remains negative, confirming bearish sentiment. Consolidation may occur around current levels before a reversal attempt.
💹 Entry & Exit Zones:
- Optimal Entry: ₹2,400–₹2,430 (near support, oversold RSI)
- Stop-Loss: ₹2,350 (strong support zone)
- Exit Zone: ₹2,580–₹2,600 (near 200 DMA resistance)
- Major Resistance: ₹2,967 (52-week high)
📉 Trend Status: The stock is consolidating with bearish bias, but oversold RSI suggests potential short-term reversal if support levels hold.
Positive
- Strong ROCE (43.3%) and ROE (32.4%) highlight efficient capital use.
- Debt-free balance sheet ensures financial stability.
- Quarterly PAT grew to ₹770 Cr. from ₹718 Cr., showing healthy earnings momentum.
- PEG ratio of 1.75 indicates reasonable valuation compared to growth prospects.
Limitation
- Stock P/E (36.5) is higher than industry average (27.5), suggesting overvaluation.
- Price trading below both 50 DMA and 200 DMA reflects weak technical strength.
- Dividend yield of 1.83% is modest compared to peers.
Company Negative News
- Decline in FII holding (-0.70%) shows reduced foreign investor confidence.
- Stock corrected from its 52-week high of ₹2,967, indicating selling pressure.
Company Positive News
- DII holdings increased (+0.77%), showing domestic institutional support.
- Quarterly profit growth of 20% reflects strong operational performance.
Industry
- Asset management industry benefits from rising retail participation in mutual funds.
- Industry PE at 27.5 highlights relatively cheaper peers compared to HDFCAMC.
Conclusion
⚖️ HDFCAMC is technically weak but fundamentally strong, with robust profitability and zero debt. Current price action suggests consolidation with bearish bias. Traders may consider accumulating near ₹2,400–₹2,430 with strict stop-loss at ₹2,350, targeting ₹2,580–₹2,600 in the short term. Long-term investors should wait for better valuations closer to industry PE levels.
Would you like me to prepare a peer benchmarking overlay (e.g., Nippon AMC, UTI AMC, Aditya Birla AMC) so you can compare sector rotation opportunities alongside HDFCAMC?