MFSL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.4

📈 Chart Patterns & Trend: MFSL is trading at ₹1,686, above both its 50 DMA (₹1,651) and 200 DMA (₹1,498). This indicates a short-term uptrend supported by moving averages, though the stock is near its recent high of ₹1,765, suggesting resistance.

📊 Moving Averages: Price above both short- and long-term averages confirms bullish sentiment. Key support lies near ₹1,650 (50 DMA) and ₹1,500 (200 DMA), while resistance is around ₹1,750–₹1,765.

📉 RSI: At 52.4, RSI is neutral, showing balanced momentum without overbought or oversold signals.

📈 MACD: Positive MACD (10.9) signals bullish momentum, supporting continuation of the uptrend.

📉 Bollinger Bands: Price is near the upper band, indicating short-term resistance around ₹1,765. A breakout above this level could trigger fresh highs.

📊 Volume Trends: Current volume (2.47L) is below the weekly average (4.28L), showing reduced participation. Stronger volume is needed to confirm a breakout above resistance.

🎯 Entry Zone: ₹1,650–₹1,670 (near support)

🚪 Exit Zone: ₹1,750–₹1,770 (near resistance/high)

Positive

• Stock trading above both 50 DMA and 200 DMA confirms bullish momentum.
• Debt-free balance sheet (Debt-to-equity 0.00) ensures financial stability.
• FII holding increased (+0.07%), showing foreign investor confidence.

Limitation

• Negative ROCE (-0.13%) and ROE (-0.14%) highlight weak efficiency.
• Quarterly PAT remains negative (-₹3.40 Cr.), showing profitability concerns.
• DII holding decreased (-0.03%), reflecting reduced domestic institutional support.
• EPS of -₹0.29 indicates earnings weakness.

Company Negative News

• Quarterly profit variation (-38.2%) highlights earnings volatility.
• Consistent negative PAT raises concerns about sustainability.

Company Positive News

• Stock price momentum supported by moving averages and positive MACD.
• Debt-free structure provides long-term financial stability.

Industry

• Industry PE at 84.3 is significantly higher than MFSL’s valuation, suggesting relative undervaluation.
• Insurance and financial services sector benefits from rising demand but faces profitability pressures.

Conclusion

📌 MFSL is in a short-term uptrend, trading above key moving averages with positive MACD and neutral RSI. Entry near ₹1,650–₹1,670 offers favorable risk-reward, while resistance at ₹1,750–₹1,770 provides exit targets. Despite technical strength, weak fundamentals and negative profitability warrant caution in the medium term.