HDFCAMC - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | HDFCAMC | Market Cap | 1,05,300 Cr. | Current Price | 2,461 ₹ | High / Low | 2,967 ₹ |
| Stock P/E | 36.6 | Book Value | 181 ₹ | Dividend Yield | 1.83 % | ROCE | 43.3 % |
| ROE | 32.4 % | Face Value | 5.00 ₹ | DMA 50 | 2,594 ₹ | DMA 200 | 2,562 ₹ |
| Chg in FII Hold | -0.70 % | Chg in DII Hold | 0.77 % | PAT Qtr | 770 Cr. | PAT Prev Qtr | 718 Cr. |
| RSI | 40.9 | MACD | -39.6 | Volume | 6,05,900 | Avg Vol 1Wk | 12,07,912 |
| Low price | 1,763 ₹ | High price | 2,967 ₹ | PEG Ratio | 1.75 | Debt to equity | 0.00 |
| 52w Index | 57.9 % | Qtr Profit Var | 20.0 % | EPS | 67.2 ₹ | Industry PE | 25.3 |
📊 Chart & Trend Analysis: HDFCAMC is trading at ₹2,461, below both its 50 DMA (₹2,594) and 200 DMA (₹2,562), indicating short-term weakness. RSI at 40.9 suggests the stock is approaching oversold territory. MACD at -39.6 reflects bearish momentum. Volume (6.05L) is significantly lower than the weekly average (12.07L), showing weak participation. Bollinger Bands indicate price drifting towards the lower band, reinforcing bearish consolidation.
📈 Momentum Signals: Short-term momentum is negative, with MACD bearish crossover and RSI near oversold levels. Weak volume further confirms lack of buying strength.
🎯 Entry Zone: ₹2,400 – ₹2,430 (near immediate support)
🚪 Exit Zone: ₹2,550 – ₹2,580 (near resistance at 200 DMA)
🔎 Trend Status: Consolidating with bearish bias. Sustained trade below ₹2,400 could trigger reversal towards ₹2,300, while recovery above ₹2,600 may signal trend reversal to bullish.
Positive
- Strong ROCE (43.3%) and ROE (32.4%) highlight efficient capital use.
- Debt-free balance sheet (0.00 debt-to-equity) ensures financial stability.
- PEG ratio of 1.75 indicates reasonable valuation relative to growth.
- Quarterly PAT growth from ₹718 Cr. to ₹770 Cr. shows earnings momentum.
Limitation
- Stock trading below both 50 DMA and 200 DMA signals weakness.
- High P/E ratio (36.6) compared to industry average (25.3) suggests overvaluation.
- Low trading volume reduces conviction in recovery moves.
Company Negative News
- Decline in FII holding (-0.70%) indicates reduced foreign investor confidence.
Company Positive News
- Increase in DII holding (+0.77%) reflects domestic institutional support.
- Quarterly profit variation of 20% shows strong earnings growth.
Industry
- Asset management industry benefits from rising retail participation in mutual funds.
- Industry P/E at 25.3 highlights moderate sector valuation compared to HDFCAMC’s premium.
Conclusion
⚖️ HDFCAMC is consolidating with a bearish bias. Entry near ₹2,400–₹2,430 offers cautious accumulation, while exits near ₹2,550–₹2,580 provide short-term profit booking. Strong fundamentals support long-term holding, but current technical weakness and high valuation warrant patience for better entry opportunities.
Would you like me to also prepare a basket overlay with peers (Nippon Life AMC, UTI AMC, Aditya Birla AMC) so you can benchmark HDFCAMC’s relative strength within the asset management sector?