IIFL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.8
| Stock Code | IIFL | Market Cap | 20,207 Cr. | Current Price | 476 ₹ | High / Low | 675 ₹ |
| Stock P/E | 29.6 | Book Value | 162 ₹ | Dividend Yield | 0.84 % | ROCE | 6.57 % |
| ROE | 4.20 % | Face Value | 2.00 ₹ | DMA 50 | 575 ₹ | DMA 200 | 508 ₹ |
| Chg in FII Hold | 1.00 % | Chg in DII Hold | 0.03 % | PAT Qtr | 301 Cr. | PAT Prev Qtr | 211 Cr. |
| RSI | 25.9 | MACD | -22.4 | Volume | 36,43,120 | Avg Vol 1Wk | 51,50,518 |
| Low price | 280 ₹ | High price | 675 ₹ | PEG Ratio | -0.98 | Debt to equity | 4.55 |
| 52w Index | 49.6 % | Qtr Profit Var | 1,785 % | EPS | 16.1 ₹ | Industry PE | 18.9 |
📊 Chart Patterns & Trend: IIFL is currently in a reversal phase after a steep decline from its highs. Price is trading well below both the 50 DMA (575 ₹) and 200 DMA (508 ₹), indicating strong bearish pressure.
📉 Moving Averages: Both 50 DMA and 200 DMA are above the current price (476 ₹), acting as resistance. This confirms a bearish trend.
📉 RSI: At 25.9, RSI is in oversold territory, suggesting potential for a short-term bounce but overall weakness.
📉 MACD: Strongly negative (-22.4), showing bearish crossover and continued downside momentum.
📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions. A short-term rebound may occur, but trend remains weak.
📊 Volume Trends: Current volume (36.4 lakh) is lower than average weekly volume (51.5 lakh), showing reduced participation and lack of strong buying support.
🎯 Entry Zone: 460–470 ₹ (oversold support zone).
🎯 Exit Zone: 505–520 ₹ (near 200 DMA resistance).
🔑 Stop Loss: 445 ₹ (below recent support).
Positive
- Quarterly PAT surged from 211 Cr. to 301 Cr. (1785% variation), showing strong earnings momentum.
- EPS at 16.1 ₹ supports valuation strength.
- FII holdings increased (+1.0%), reflecting foreign investor confidence.
- Dividend yield of 0.84% adds minor income stability.
Limitation
- Price trading below both 50 DMA and 200 DMA confirms bearish trend.
- ROE at 4.20% and ROCE at 6.57% are weak compared to peers.
- PEG ratio (-0.98) indicates poor growth-adjusted valuation.
- High debt-to-equity ratio (4.55) raises leverage concerns.
Company Negative News
- Stock has corrected sharply from 675 ₹ to 476 ₹, showing investor caution.
- Weak return ratios limit efficiency and profitability outlook.
Company Positive News
- Strong quarterly profit growth supports earnings momentum.
- Stable institutional inflows (FII +1.0%, DII +0.03%).
- 52-week performance shows resilience with 49.6% index gain.
Industry
- Industry PE at 18.9 vs. stock PE at 29.6 highlights premium valuation.
- Financial services sector supported by credit demand and digital adoption trends.
Conclusion
⚖️ IIFL is in a bearish reversal phase with oversold signals (RSI low, MACD negative). Short-term bounce is possible from 460–470 ₹, but resistance near 505–520 ₹ limits upside. Medium-term outlook remains weak due to high leverage, poor return ratios, and stretched valuation. Risk management is crucial for traders considering entry.
Would you like me to extend this into a peer benchmarking overlay with other NBFCs like Bajaj Finance, Muthoot Finance, and Manappuram Finance to highlight relative strength and sector rotation opportunities?