IIFL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.2

📈 IIFL is trending upward with strong momentum and volume breakout, though short-term caution is advised due to overbought signals.

📊 Technical Analysis

• Trend Status: Trending — price is above both 50-DMA and 200-DMA, confirming bullish momentum.
• Moving Averages: Price ₹540 is well above 50-DMA (₹479) and 200-DMA (₹447), indicating sustained uptrend.
• RSI (70.5): Overbought zone, suggesting strong momentum but risk of short-term pullback.
• MACD (17.8): Bullish crossover, reinforcing positive sentiment.
• Bollinger Bands: Price near upper band, indicating strength and potential resistance.
• Volume: Current volume (64.5L) is significantly above weekly average (42.5L), confirming breakout interest.

🎯 Entry & Exit Zones

• Support Levels: ₹520, ₹500, ₹479 (50-DMA)
• Resistance Levels: ₹558 (52-week high), ₹570
• Optimal Entry: ₹520–₹530 (on pullback)
• Exit Target: ₹558–₹570 (resistance zone)

✅ Positive

• Quarterly PAT increased from ₹133 Cr to ₹211 Cr, showing strong earnings growth.
• EPS of ₹9.36 and 86.3% profit variation reflect operational strength.
• FII holdings increased by 0.15%, and DII holdings rose by 1.04%, indicating institutional confidence.
• Price has surged 93.6% from its 52-week low, confirming bullish trend.

⚠️ Limitation

• RSI in overbought territory may lead to short-term correction.
• High P/E (57.7) and negative PEG (-1.92) suggest valuation concerns.
• ROE (4.20%) and ROCE (6.57%) are relatively low, indicating modest return efficiency.

📉 Company Negative News

• Debt-to-equity ratio of 4.55 is high, raising leverage concerns.
• Dividend yield is 0%, offering no passive income.

📈 Company Positive News

• Strong quarterly earnings and institutional accumulation signal growth optimism.
• Breakout volume and price action suggest continued investor interest.

🏭 Industry

• Financial services sector remains active with rising demand for retail and digital lending.
• Industry P/E (22.3) is significantly lower than IIFL’s, indicating premium valuation.

🧾 Conclusion

• IIFL is trending upward with strong technical indicators and institutional support.
• Entry near ₹520–₹530 could offer a favorable setup with targets around ₹558–₹570.
• Investors should monitor RSI and valuation metrics for signs of exhaustion or continuation.