MOTILALOFS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | MOTILALOFS | Market Cap | 43,509 Cr. | Current Price | 722 ₹ | High / Low | 1,097 ₹ |
| Stock P/E | 45.2 | Book Value | 134 ₹ | Dividend Yield | 0.83 % | ROCE | 17.8 % |
| ROE | 21.4 % | Face Value | 1.00 ₹ | DMA 50 | 845 ₹ | DMA 200 | 859 ₹ |
| Chg in FII Hold | -0.59 % | Chg in DII Hold | 0.58 % | PAT Qtr | 245 Cr. | PAT Prev Qtr | 194 Cr. |
| RSI | 34.6 | MACD | -33.8 | Volume | 33,13,467 | Avg Vol 1Wk | 34,60,475 |
| Low price | 488 ₹ | High price | 1,097 ₹ | PEG Ratio | 1.78 | Debt to equity | 1.16 |
| 52w Index | 38.5 % | Qtr Profit Var | -15.3 % | EPS | 16.0 ₹ | Industry PE | 19.1 |
📊 Chart & Trend Analysis:
MOTILALOFS is trading at ₹722, well below its 50 DMA (₹845) and 200 DMA (₹859), signaling a bearish trend. RSI at 34.6 indicates the stock is nearing oversold territory, while MACD at -33.8 confirms strong bearish momentum. Bollinger Bands show price drifting near the lower band, suggesting weak sentiment. Current volume (33.1 lakh) is slightly below the 1-week average, reflecting moderate participation without strong buying support.
📈 Momentum Signals:
- RSI near oversold zone may trigger a short-term bounce.
- MACD strongly negative, confirming bearish continuation.
- Price below both 50 & 200 DMA indicates sustained weakness.
- Volume trend shows lack of aggressive accumulation.
🎯 Optimal Entry & Exit Zones:
- Entry Zone: ₹700 – ₹710 (near support, oversold RSI).
- Exit Zone: ₹840 – ₹860 (resistance at 50 & 200 DMA).
- Stop Loss: ₹680 (below key support).
📌 Trend Status: The stock is consolidating with bearish bias, holding above long-term support (₹700) but failing to break resistance levels.
Positive
- Strong ROE (21.4%) and ROCE (17.8%) highlight efficient capital use.
- EPS of ₹16.0 shows consistent earnings power.
- PEG ratio of 1.78 indicates growth is reasonably priced compared to peers.
Limitation
- High P/E (45.2) compared to industry average (19.1) suggests overvaluation.
- Debt-to-equity ratio of 1.16 indicates higher leverage risk.
- Stock trading below both 50 DMA and 200 DMA reflects weak technical strength.
Company Negative News
- Quarterly profit variation (-15.3%) shows earnings pressure.
- FII holding decreased (-0.59%), signaling reduced foreign investor confidence.
Company Positive News
- PAT improved sequentially from ₹194 Cr. to ₹245 Cr., showing operational recovery.
- DII holding increased (+0.58%), reflecting domestic institutional support.
Industry
- Industry P/E at 19.1 is significantly lower, making peers more attractive on valuation.
- Financial services sector remains cyclical, influenced by market sentiment and liquidity flows.
Conclusion
⚖️ MOTILALOFS is consolidating with a bearish bias, trading below key moving averages and showing weak momentum. While fundamentals like ROE and EPS remain strong, high leverage and stretched valuations pose risks. Short-term traders may consider entry near ₹700–₹710 with exits around ₹840–₹860, while long-term investors should wait for debt reduction and valuation alignment with industry peers before fresh accumulation.