UTIAMC - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.2

📉 UTIAMC is currently in a reversal phase with bearish momentum and weak short-term signals. Entry zone: ₹1,220–₹1,248; exit zone: ₹1,280–₹1,310. Watch for MACD recovery and RSI bounce to confirm trend reversal.

📊 Technical Overview

• Price Action: Trading at ₹1,248, below 50-DMA (₹1,330) and just at 200-DMA (₹1,249), indicating short-term weakness and critical support test.
• RSI (35.0): Near oversold zone, suggesting potential for technical bounce.
• MACD (-13.7): Bearish crossover, confirming downward pressure.
• Bollinger Bands: Price near lower band, indicating oversold conditions with possible support.
• Volume: Above 1-week average, showing active participation despite price weakness.
• Support Zones: ₹1,220 (S1), ₹1,200 (S2)
• Resistance Zones: ₹1,280 (R1), ₹1,310 (R2)

✅ Positive

• Strong ROCE (23.7%) and ROE (17.5%) reflect solid operational efficiency.
• EPS of ₹50.7 supports valuation and earnings visibility.
• Dividend yield of 2.08% offers attractive income potential.
• Volume above average suggests investor interest despite technical weakness.

⚠️ Limitation

• Stock P/E (24.6) is below industry average (30.7), but recent earnings contraction may justify discount.
• MACD and RSI show bearish divergence, limiting short-term upside.
• Price trading below 50-DMA confirms short-term downtrend.
• PEG ratio of 1.53 indicates fair valuation but not undervalued.

📉 Company Negative News

• Quarterly PAT declined from ₹216 Cr. to ₹166 Cr., a 17.4% drop.
• FII holdings declined (-0.08%), reflecting cautious foreign sentiment.

📈 Company Positive News

• DII holdings increased (+0.24%), showing domestic institutional support.
• Zero debt-to-equity ratio ensures financial stability and flexibility.

🏢 Industry

• Asset management sector benefits from rising retail participation and long-term savings trends.
• Industry P/E of 30.7 reflects moderate valuation across peers.

🧭 Conclusion

• UTIAMC is in a reversal phase with bearish momentum and weak technical indicators.
• Entry zone: ₹1,220–₹1,248; exit zone: ₹1,280–₹1,310 for short-term bounce trades.
• Long-term investors may accumulate on dips, supported by strong fundamentals and sector resilience.