HOMEFIRST - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.7

📊 Chart Patterns: HomeFirst is trading slightly below both its 50 DMA (1,176 ₹) and 200 DMA (1,189 ₹), showing short-term weakness. Current price (1,155 ₹) is near support at 1,140–1,150 ₹, with resistance around 1,180–1,200 ₹.

📉 Moving Averages: Price below both averages indicates short-term bearish sentiment. Sustaining above 1,190 ₹ is needed to regain strength.

📉 RSI: At 49.2, RSI is neutral, suggesting balanced momentum with no clear overbought or oversold signals.

📉 MACD: Slightly negative at -0.71, confirming weak momentum and consolidation bias.

📊 Bollinger Bands: Price is near the mid-band, suggesting sideways consolidation within the current range.

📉 Volume Trends: Current volume (77,928) is below average weekly volume (1,04,835), showing reduced participation and lack of strong buying conviction.

📌 Short-term Momentum Signals: Neutral to weak — RSI stable but MACD negative. A bounce is possible if price holds above 1,140 ₹. Breakout above 1,190–1,200 ₹ could trigger recovery toward 1,230 ₹.

🎯 Optimal Entry Zone: 1,140–1,155 ₹ (near support).

🎯 Optimal Exit Zone: 1,190–1,230 ₹ (near resistance).

📉 Trend Status: The stock is consolidating with a bearish bias, awaiting breakout confirmation.

Positive

• Quarterly PAT growth (132 Cr. vs 119 Cr.), up 43%, highlights strong earnings momentum.
• EPS of 46.7 ₹ supports valuation strength.
• FII holding increased by 2.80%, showing foreign investor confidence.
• DII holding increased significantly by 6.95%, reflecting strong domestic institutional support.
• PEG ratio of 0.98 indicates fair growth relative to valuation.

Limitation

• Stock trading below both 50 DMA and 200 DMA shows weak technical strength.
• Debt-to-equity ratio of 2.40 indicates high leverage.
• Dividend yield of 0.31% is low, limiting passive income appeal.
• ROCE (11.4%) is modest compared to peers.

Company Negative News

• High leverage (Debt-to-equity 2.40) raises concerns about financial risk.

Company Positive News

• Quarterly PAT growth highlights strong operational performance.
• Both FII and DII holdings increased, reflecting broad investor confidence.

Industry

• Industry PE at 18.0 is lower than HomeFirst’s PE (26.5), suggesting relative overvaluation.
• Housing finance sector outlook remains positive, supported by urbanization and rising demand for affordable housing.

Conclusion

⚖️ HomeFirst shows strong fundamentals with rising profits and investor confidence, but technically the stock is consolidating below key averages with weak momentum signals. Entry is favorable near 1,140–1,155 ₹ with cautious exit around 1,190–1,230 ₹. Long-term investors may hold for sector growth, while short-term traders should wait for breakout above 1,190 ₹.