KARURVYSYA - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 4.0

📊 Chart Patterns & Trend: KARURVYSYA is trading above both its 50 DMA (242 ₹) and 200 DMA (217 ₹), showing strong bullish momentum. Price action suggests the stock is in a trending phase near its 52-week high (258 ₹).

📈 Moving Averages: Current price (252 ₹) is comfortably above both 50 DMA and 200 DMA, confirming an uptrend. Immediate resistance lies around 258 ₹ (recent high).

📉 RSI: At 53.1, RSI is in neutral territory, indicating balanced momentum with room for further upside.

📈 MACD: Positive at 0.52, confirming bullish momentum and signaling continuation of the uptrend.

📊 Bollinger Bands: Price is near the upper band, suggesting strong buying interest but also caution for potential short-term pullbacks.

📉 Volume Trends: Current volume (8,72,908) is slightly below average weekly volume (10,82,268), showing moderate participation. Sustained higher volumes would strengthen the breakout potential.

🎯 Entry Zone: 242–248 ₹ (near 50 DMA support).

🎯 Exit Zone: 258–265 ₹ (near resistance and 52-week high).

⚡ Momentum: Strong, with bullish signals and trending behavior.

Positive

• Strong quarterly profit growth (21.2% QoQ, PAT 574 Cr vs 521 Cr).
• EPS at 21.8 ₹ indicates solid earnings power.
• Low P/E ratio (11.6) compared to industry PE (14.7), suggesting undervaluation.
• FII (+0.40%) and DII (+0.50%) holdings increased, showing institutional confidence.

Limitation

• Debt-to-equity ratio at 8.83 is very high, raising financial risk concerns.
• ROCE at 7.38% is relatively weak compared to peers.
• Volume participation is slightly below average, limiting breakout strength.

Company Negative News

• High leverage (Debt-to-equity 8.83) could impact long-term stability.
• ROCE remains weak despite profit growth, showing efficiency concerns.

Company Positive News

• Quarterly PAT growth of 21.2% highlights strong operational performance.
• EPS growth and undervaluation compared to industry PE support investor confidence.
• Institutional investors (FII & DII) increased holdings, signaling trust in fundamentals.

Industry

• Industry PE at 14.7 is higher than KARURVYSYA’s PE (11.6), showing relative undervaluation.
• Banking sector demand remains strong, supported by credit growth and rising profitability.

Conclusion

⚖️ KARURVYSYA is currently in a strong uptrend, trading above key moving averages with bullish MACD and neutral RSI. Entry opportunities lie near 242–248 ₹, with resistance around 258–265 ₹. Fundamentally undervalued with profit growth and rising institutional confidence, but high debt levels remain a concern. Best suited for medium-to-long term investors; traders can capitalize on momentum while monitoring resistance levels.