KFINTECH - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | KFINTECH | Market Cap | 16,982 Cr. | Current Price | 984 ₹ | High / Low | 1,388 ₹ |
| Stock P/E | 50.0 | Book Value | 84.2 ₹ | Dividend Yield | 0.76 % | ROCE | 33.6 % |
| ROE | 25.6 % | Face Value | 10.0 ₹ | DMA 50 | 1,056 ₹ | DMA 200 | 1,084 ₹ |
| Chg in FII Hold | 0.63 % | Chg in DII Hold | 0.07 % | PAT Qtr | 91.1 Cr. | PAT Prev Qtr | 76.1 Cr. |
| RSI | 32.5 | MACD | -18.1 | Volume | 4,40,500 | Avg Vol 1Wk | 5,85,608 |
| Low price | 784 ₹ | High price | 1,388 ₹ | PEG Ratio | 1.75 | Debt to equity | 0.03 |
| 52w Index | 33.0 % | Qtr Profit Var | 6.93 % | EPS | 19.7 ₹ | Industry PE | 49.1 |
📊 Chart Patterns & Trend: The stock is trading at ₹984, below both its 50 DMA (₹1,056) and 200 DMA (₹1,084), reflecting bearish pressure. Price action is near the lower end of its 52-week range (₹784–₹1,388), suggesting weak momentum with consolidation signs.
📈 Moving Averages: Current price is below both 50 DMA and 200 DMA, confirming downward momentum. A recovery above ₹1,056 would be the first bullish signal, while sustaining above ₹1,084 would confirm reversal.
📉 RSI: At 32.5, RSI is close to oversold territory, indicating potential for a short-term rebound if buying interest emerges.
📉 MACD: Negative at -18.1, showing bearish divergence. Trend remains weak until MACD narrows toward zero.
📊 Bollinger Bands: Price is near the lower band, suggesting limited downside and potential mean reversion toward ₹1,020–₹1,050.
📊 Volume Trends: Current volume (4.4 Lakh) is lower than average weekly volume (5.8 Lakh), showing reduced participation and lack of strong breakout signals.
🎯 Entry Zone: ₹960–₹985 (near support and oversold RSI).
🎯 Exit Zone: ₹1,050–₹1,080 (near resistance and moving averages).
📌 Trend Status: Bearish with consolidation signs. A reversal may occur if RSI rebounds and price sustains above ₹1,050–₹1,080.
Positive
- Strong ROCE (33.6%) and ROE (25.6%) highlight excellent capital efficiency.
- Low debt-to-equity ratio (0.03) ensures financial stability.
- Dividend yield of 0.76% provides steady income for investors.
- Quarterly PAT improved to ₹91.1 Cr from ₹76.1 Cr, showing earnings growth.
Limitation
- Stock P/E (50.0) is slightly higher than industry PE (49.1), indicating premium valuation.
- Price trading below both 50 DMA and 200 DMA confirms weak momentum.
- PEG ratio (1.75) suggests valuation is stretched relative to growth.
Company Negative News
- Volume activity below average indicates weak investor participation.
Company Positive News
- FII holdings increased (+0.63%), showing foreign investor confidence.
- DII holdings increased (+0.07%), reflecting domestic institutional support.
- Quarterly profit growth (+6.93%) indicates improving fundamentals.
Industry
- Industry PE at 49.1 is close to the stock’s P/E, suggesting sector trades at premium valuations.
- KFINTECH trades at a slight premium but maintains strong fundamentals with high ROCE and ROE.
Conclusion
⚖️ KFINTECH is currently in a bearish phase, trading below key moving averages with weak momentum indicators. However, oversold RSI and strong fundamentals provide potential for a short-term rebound. Entry near ₹960–₹985 offers favorable risk-reward, while exits around ₹1,050–₹1,080 align with resistance. Sustained buying and a move above ₹1,056–₹1,084 would confirm reversal toward bullish momentum.