MUTHOOTFIN - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.1

📈 Chart Patterns & Trend: MUTHOOTFIN is trading at ₹3,788, above both its 50 DMA (₹3,518) and 200 DMA (₹2,888). This indicates a strong uptrend with bullish momentum, as the stock is near its 52-week high of ₹3,869.

📊 Moving Averages: Price above both short- and long-term averages confirms bullish sentiment. Key support lies near ₹3,500 (50 DMA) and ₹2,900 (200 DMA), while resistance is around ₹3,850–₹3,870.

📉 RSI: At 56.6, RSI is in the bullish zone but not overbought, suggesting room for further upside.

📈 MACD: Positive MACD (86.0) signals strong bullish momentum, supporting continuation of the uptrend.

📉 Bollinger Bands: Price is near the upper band, indicating short-term resistance around ₹3,850–₹3,870. A breakout above this level could trigger fresh highs.

📊 Volume Trends: Current volume (3.48L) is higher than the weekly average (2.81L), showing strong buying interest and confirming bullish sentiment.

🎯 Entry Zone: ₹3,600–₹3,700 (near support)

🚪 Exit Zone: ₹3,850–₹3,870 (near resistance/high)

Positive

• Strong ROE (19.7%) and ROCE (13.4%) reflect efficient capital utilization.
• Quarterly PAT improved significantly from ₹2,046 Cr. to ₹2,345 Cr. (+87.4%).
• EPS of ₹181 highlights strong earnings power.
• FII holding increased (+0.74%), showing foreign investor confidence.

Limitation

• High debt-to-equity ratio (3.52) indicates leverage risk.
• DII holding decreased (-0.84%), showing reduced domestic institutional confidence.
• PEG ratio of 2.19 highlights expensive valuation relative to growth.
• Dividend yield at 0.69% is modest for income-focused investors.

Company Negative News

• High leverage raises concerns about long-term financial stability.
• Reduced domestic institutional participation adds pressure on sentiment.

Company Positive News

• Strong quarterly profit growth supports earnings momentum.
• Foreign institutional investors increased stake, showing confidence in long-term prospects.
• Stock trading near 52-week highs reflects strong market momentum.

Industry

• Industry PE at 21.2 is slightly higher than MUTHOOTFIN’s PE (20.9), suggesting fair valuation.
• Financial services sector benefits from rising credit demand and gold-backed lending growth.

Conclusion

📌 MUTHOOTFIN is in a strong uptrend, trading above key moving averages with positive MACD and supportive RSI. Entry near ₹3,600–₹3,700 offers favorable risk-reward, while resistance at ₹3,850–₹3,870 provides exit targets. Strong fundamentals and profitability support long-term growth, though high leverage and reduced domestic participation warrant cautious optimism in the near term.