MFSL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

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Technical Rating: 3.2

Technical Analysis Summary

• Trend: Reversing from highs, showing short-term weakness
• Moving Averages: Price (₹1,544) is below DMA 50 (₹1,562) but above DMA 200 (₹1,427), indicating mixed signals
• RSI (47.0): Neutral zone, leaning toward weakness
• MACD (-13.4): Bearish crossover, confirming downward momentum
• Bollinger Bands: Price near mid-band, suggesting consolidation with downside bias
• Volume: Significantly below average (3.36L vs 9.49L), indicating weak participation

Entry & Exit Zones

• Support: ₹1,500 – ₹1,520 (recent base zone)
• Resistance: ₹1,560 – ₹1,580 (DMA 50 and prior swing highs)
• Optimal Entry: ₹1,510 – ₹1,520 if RSI stabilizes and volume improves
• Exit Zone: ₹1,560 – ₹1,580 if price fails to break above resistance

Positive

• Price up 81.5% over 52 weeks
• Zero debt and clean balance sheet
• EPS improving marginally (₹-2.59 Cr. to ₹-2.52 Cr.)
• Positive FII sentiment (+0.07%)

Limitation

• Negative ROCE (-0.13%) and ROE (-0.14%)
• MACD and RSI indicate bearish momentum
• EPS is negative (₹-0.26)
• Volume significantly below average

Company Negative News

• Continued quarterly losses and weak profitability metrics

Company Positive News

• Institutional interest remains stable with slight FII increase
• Long-term price performance remains strong

Industry

• MFSL operates in the financial services and insurance sector
• Peers include HDFC Life, SBI Life, and ICICI Prudential

Conclusion

MFSL is currently reversing from its highs with bearish technical indicators and weak momentum. While long-term price performance is strong, short-term caution is warranted due to negative earnings and low volume. Traders may consider entry near ₹1,510 with targets around ₹1,580, watching for MACD and RSI recovery.