UTIAMC - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.5

📈 Technical Analysis

• Chart Patterns: UTIAMC is trading near the lower-mid range of its 52-week performance (1,131 ₹ vs 1,495 ₹ high), showing weakness and mild bearish undertone.
• Moving Averages: Current price (1,131 ₹) is below both 50 DMA (1,193 ₹) and 200 DMA (1,221 ₹), confirming downward bias.
• RSI: At 45.7, RSI indicates neutral-to-weak momentum, not oversold but lacking strength.
• MACD: Negative at -21.6, signaling bearish continuation.
• Bollinger Bands: Price near lower band, suggesting oversold condition and potential minor rebound.
• Volume Trends: Current volume (5.6L) is higher than average weekly volume (2.5L), showing increased activity, likely selling pressure.

🎯 Momentum & Trade Zones

• Support Levels: 1,120 ₹ immediate support, 1,100 ₹ strong support, and long-term support at 905 ₹.
• Resistance Levels: 1,193 ₹ (50 DMA) and 1,221 ₹ (200 DMA).
• Entry Zone: Accumulate cautiously near 1,120–1,130 ₹ if rebound signals appear.
• Exit Zone: Short-term exit near 1,190–1,220 ₹.
• Trend: Stock is currently reversing downward but may consolidate near support levels.

✅ Positive

• Strong ROCE (23.7%) and ROE (17.5%).
• EPS at 50.7 ₹ reflects solid earnings base.
• Dividend yield at 2.33% provides shareholder return.
• DII holding increased by 0.24%, reflecting domestic institutional support.
• Debt-free balance sheet (Debt-to-equity: 0.00).

⚠️ Limitation

• Stock trading below both 50 & 200 DMA, confirming bearish trend.
• Quarterly PAT declined from 216 Cr. to 166 Cr. (-17.4%).
• PEG ratio at 1.39 indicates stretched valuation relative to growth.
• 52-week index at only 38.4%, reflecting underperformance.

📉 Company Negative News

• FII holding reduced by -0.08%, showing weaker foreign investor confidence.
• Quarterly earnings decline (-17.4%) highlights pressure on profitability.

📊 Company Positive News

• DII holding increased by 0.24%, showing domestic support.
• Strong return ratios (ROCE & ROE) highlight operational efficiency.
• Dividend yield at 2.33% adds to investor appeal.

🏭 Industry

• Industry P/E at 28.5, higher than UTIAMC’s 22.4, suggesting relatively fair valuation.
• Asset management industry outlook remains steady, supported by rising retail participation in capital markets.

📝 Conclusion

• UTIAMC is in a bearish reversal phase, trading below key moving averages.
• Oversold signals suggest possible short-term bounce, but momentum remains weak.
• Best strategy: cautious accumulation near 1,120–1,130 ₹ with strict stop-loss; exit near 1,190–1,220 ₹.
• Medium-term outlook cautious; recovery depends on earnings improvement and price sustaining above 1,221 ₹ resistance.