MOTILALOFS - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.0

📉 Chart Patterns & Trend: MOTILALOFS is trading at ₹860, below its 50 DMA (₹924) but slightly above its 200 DMA (₹873). This indicates a bearish reversal in the short term, with the stock struggling to maintain momentum after a steep decline from its high of ₹1,097.

📊 Moving Averages: Price below the 50 DMA shows short-term weakness, while holding above the 200 DMA provides some long-term support. Key support lies near ₹850–₹860 and ₹800, while resistance is around ₹920–₹940.

📉 RSI: At 41.8, RSI is neutral-to-weak, suggesting limited upside momentum and possible consolidation.

📉 MACD: Negative MACD (-34.3) signals bearish momentum, reinforcing the downtrend.

📉 Bollinger Bands: Price is near the lower band, indicating oversold conditions. A reflex move toward the mid-band (~₹900–₹920) is possible before facing resistance.

📊 Volume Trends: Current volume (23.3L) is significantly higher than the weekly average (11.0L), showing strong participation. However, higher volume during declines suggests selling pressure dominates.

🎯 Entry Zone: ₹840–₹860 (near support)

🚪 Exit Zone: ₹920–₹940 (near resistance)

Positive

• Strong ROE (21.4%) and ROCE (17.8%) reflect efficient capital utilization.
• FII holding increased (+0.23%) and DII holding increased (+0.40%), showing institutional confidence.
• Debt-to-equity ratio of 1.16 is manageable for a financial services company.

Limitation

• Stock trading below 50 DMA indicates short-term weakness.
• High P/E (51.3) compared to industry PE (20.7) suggests overvaluation.
• Quarterly PAT dropped sharply from ₹532 Cr. to ₹194 Cr. (-67.2%).
• PEG ratio of 2.03 highlights expensive valuation relative to growth.

Company Negative News

• Sharp decline in quarterly profits raises concerns about earnings stability.
• Weak technical indicators (MACD negative, RSI neutral) suggest limited upside in near term.

Company Positive News

• Institutional investors (FII and DII) increased holdings, showing confidence in long-term prospects.
• Strong efficiency ratios (ROE and ROCE) highlight operational strength.

Industry

• Industry PE at 20.7 is much lower than MOTILALOFS’s PE (51.3), suggesting premium valuation.
• Financial services sector benefits from rising retail participation and wealth management demand.

Conclusion

📌 MOTILALOFS is in a bearish reversal, trading below its 50 DMA with negative MACD and weak RSI. Entry near ₹840–₹860 may offer short-term bounce potential, while resistance at ₹920–₹940 limits upside. Despite strong fundamentals and institutional support, high valuation and sharp earnings decline warrant caution in the near term.