MAXHEALTH - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.7

📉 Chart patterns & trend: MAXHEALTH is at ₹1,077, below both the 50 DMA (₹1,123) and 200 DMA (₹1,132). This points to a bearish reversal with lower highs and weak momentum. Price is closer to recent lows than highs, keeping downside risk elevated.

📊 Moving averages: Trading under short- and long-term averages confirms bearish sentiment. Support: ₹1,040–₹1,060 and ₹940. Resistance: ₹1,120–₹1,150 and ₹1,200.

📉 RSI: At 34.9, RSI is near oversold, hinting at a possible short-term bounce but overall weak momentum.

📉 MACD: Negative MACD (-23.3) indicates persistent bearish pressure; no confirmed bullish crossover yet.

📉 Bollinger Bands: Price near the lower band suggests oversold conditions. A reflex move toward the mid-band (~₹1,110–₹1,130) is plausible before major resistance.

📊 Volume trends: Volume (52.5L) is well above the 1-week average (31.9L), indicating strong participation on the downside; sellers dominate, so watch for volume contraction before entries.

🎯 Entry zone: ₹1,040–₹1,065 (staggered buys near support, tight risk control)

🚪 Exit zone: ₹1,120–₹1,150 (first resistance) and ₹1,190–₹1,210 (secondary resistance)

Positive

• Low debt-to-equity (0.08) supports balance sheet resilience.
• DII holding increased (+2.62%), indicating domestic institutional support.
• ROCE (12.5%) and ROE (9.45%) show acceptable efficiency for a growth-oriented healthcare play.

Limitation

• Trading below 50 DMA and 200 DMA with negative MACD and low RSI signals weak technicals.
• Very high P/E (151) versus industry PE (51.8) implies premium/overvaluation risk.
• Quarterly profit variation (-30.6%) and slight QoQ PAT decline (₹166 Cr. → ₹160 Cr.) reflect pressure.
• FII holding decreased (-2.96%), suggesting waning foreign interest.

Company Negative News

• Earnings moderation with lower PAT and negative profit variation.
• Sustained selling pressure evident from high volumes during price declines.

Company Positive News

• Domestic institutions increasing stake signals local confidence.
• Operational stability with low leverage provides flexibility for capex and expansion.

Industry

• Healthcare services command premium valuations (industry PE ~51.8), but stock trades at an even higher multiple.
• Structural demand tailwinds from rising healthcare utilization and capacity expansion remain supportive long term.

Conclusion

📌 MAXHEALTH is in a bearish reversal, below key moving averages with negative MACD and near-oversold RSI. Consider entries only near ₹1,040–₹1,065 with strict stops; aim to exit at ₹1,120–₹1,150 unless a high-volume breakout clears ₹1,190–₹1,210. Premium valuation and recent earnings softness argue for caution until momentum improves.