Book Profits In Max Financial? Technical Indicators Flash Warning Signs, Says SEBI RA Dhruv Tuli

Max Financial Services appears poised for a profit booking following a strong rally after its recent breakout.

According to SEBI-registered analyst Dhruv Tuli, Max Financial stock has entered overbought territory on the relative strength index (RSI), accompanied by a developing bearish divergence.

If the candlestick confirms the pattern by closing near its low on Friday, a healthy pullback or a consolidation phase could follow. The stock has reached its extended Fibonacci target of ₹1,657, a level previously seen as ideal for partial profit booking, Tuli noted.

The price action in Thursday’s session hinted at potential exhaustion, with the daily candle resembling a shooting star pattern, often associated with bearish reversal signals, he added.

Any fresh entry should be considered only after observing how the stock behaves over the next one or two sessions. A dip or retest of support levels could offer a better risk-reward opportunity, the analyst said.

At the time of writing, the stock was down 1.6% at ₹1,592.50.

The stock has surged over 44% year-to-date (YTD) and is likely to head into a short-term downtrend.

In other news, Max Financials’ insurance arm, Axis Max Life Insurance, is investigating unauthorized access to its customer data after receiving an anonymous tip on Wednesday. No further details have been shared.

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