This stock with near 29% FPI holding flags Sell signal; check downside risk

Aavas Financiers stock can potentially crack to ₹1,281 levels, implying a downside risk of nearly 20 per cent from here owing to the formation of 'Death Cross' pattern, suggests the daily chart.

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Aavas Financiers stock today, September 8, 2025, witnessed the formation of 'Death Cross' on the daily chart after a gap of nearly six months. 'Death Cross' formation means that the stock's 50-Day Moving Average (50-DMA) has now slipped below the 200-DMA.  In general, 'Death Cross' formation is considered as a bearish (negative) outlook as the shorter-term moving average drifts below the longer-term moving average, implying likely resistance at lower levels.  Aavas Financiers stock so far in the financial year 2025-26, has been an underperformer and declined around 23.5 per cent. In comparison, the NSE Nifty 50 index has gained 5.6 per cent as of Monday. 

Aavas Financiers latest earnings, shareholding

  On the earnings front, Aavas Financiers reported a 9.4 per cent decline in net profit at ₹139.23 crore for the quarter ended June 2025 as against ₹153.68 crore reported in the preceding quarter ended March 2025. The company's revenue from operations dipped 1.4 per cent quarter-on-quarter (QoQ) to ₹627.56 crore from ₹636.21 crore in the same comparable period.  As per the shareholding pattern filed by Aavas Financiers to the BSE, Foreign Portfolio Investors (FPIs) owned up to 28.68 per cent equity as of June 2025 quarter. Prominent FPIs include - UK-based First Sentier Investors Icvc, Abu Dhabi Investment Authority, Smallcap World Fund and Government Pension Fund Global.  Meanwhile, domestic mutual funds led by Nippon Life India Trustee, UTI-Flexi Cap Fund and 360 One Focussed Equity Fund and few others collectively hold up to 8.44 per cent stake in Aavas Financiers. Insurance companies held up to 1.84 per cent holding as of June 2025 quarter.  Against this background, here's a technical outlook on Aavas Financiers stock.     

Aavas Financiers share price outlook

  Aavas Financiers  Current Price: ₹1,596  Likely Target: ₹1,281  Downside Risk: 19.7%  Support: ₹1,520; ₹1,460; ₹1,345  Resistance: ₹1,625; ₹1,672  The 'Death Cross' formation on the daily chart shows that Aavas Financiers 50-DMA now stands at ₹1,778, while the 200-DMA at ₹1,786. The daily chart also shows that the near-term bias for the stock is likely to remain bearish as long as the stock trades below ₹1,672, with near resistance likely around its 20-DMA at ₹1,625. 

 

  On the downside, the stock can potentially drift towards the long-term trend line support, which stands at ₹1,281 - and implies a downside risk of nearly 20 per cent from current levels. Intermediate support for the stock can be anticipated around ₹1,520, ₹1,460 and ₹1,345 levels.