MUTHOOTFIN - Technical Analysis with Chart Patterns & Indicators

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

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Technical Rating: 4.2

Technical Analysis Summary

• Trend: Trending upward with strong medium-term momentum
• Moving Averages: Price (₹3,172) is above both DMA 50 (₹3,041) and DMA 200 (₹2,590), confirming bullish trend
• RSI (53.6): Neutral to bullish zone, with room for upside
• MACD (42.4): Bullish crossover, supporting continued upward momentum
• Bollinger Bands: Price near upper band, indicating strength but potential short-term resistance
• Volume: Below average (4.88L vs 6.17L), suggesting cautious participation

Entry & Exit Zones

• Support: ₹3,040 – ₹3,080 (DMA 50 and recent base)
• Resistance: ₹3,350 – ₹3,380 (recent high zone)
• Optimal Entry: ₹3,060 – ₹3,100 on pullback with MACD confirmation
• Exit Zone: ₹3,350 – ₹3,380 if price stalls near resistance

Positive

• Quarterly PAT growth of 89.7% (₹2,046 Cr. vs ₹1,508 Cr.)
• EPS of ₹154 and strong ROE (19.7%)
• Price up 87.3% over 52 weeks
• Positive FII sentiment (+0.74%) and bullish MACD crossover

Limitation

• High debt-to-equity ratio (3.51) raises leverage concerns
• PEG ratio of 2.16 suggests moderate overvaluation
• Volume below average, indicating lack of strong conviction
• Negative DII sentiment (-0.84%)

Company Negative News

• Concerns over gold loan portfolio sensitivity to price fluctuations and regulatory scrutiny

Company Positive News

• Strong earnings recovery and expanding customer base
• Improved asset quality and operational efficiency

Industry

• MUTHOOTFIN operates in the NBFC sector, specializing in gold loans and financial services
• Peers include Manappuram Finance, Bajaj Finance, and Shriram Finance

Conclusion

MUTHOOTFIN is currently trending upward with strong technical indicators and improving fundamentals. While valuation and debt levels warrant caution, momentum and earnings growth support a bullish outlook. Traders may consider entry near ₹3,060 with targets around ₹3,380, watching for volume confirmation and RSI strength.