The analyst noted Motilal Oswal’s strong fundamentals and a clear price setup could trigger a prolonged bullish phase.

Motilal Oswal Financial Services (MOTILALOFS.NSE) appears poised at a key breakout setup, just as the financials sector is beginning to gain upward momentum, according to SEBI-registered analyst Rajneesh Sharma.

Backed by strong fundamentals and a clear price setup, the stock seems to be entering not just a short-term trading window, but potentially a prolonged bullish phase, Sharma added.

On a technical setup, the stock has formed a weekly volatility contraction pattern (VCP), breaking out of an ascending trend channel and retesting the ₹880–₹900 resistance zone, the analyst said.

Sharma also noted that while volumes declined during the base formation, they have expanded in the current uptrend, signaling the strength of the breakout.

However, while a move above the all-time high of ₹1,001 could open blue-sky territory, he added that a weekly close below ₹800 would weaken the technical setup.

Motilal Oswal delivered a robust financial performance in FY25, with operating profit rising 31%, net worth growing 27%, and assets under advice (AUA) increasing 33% at a year-on-year basis.

The company also posted a 31% rise in operating revenue and sustained a robust ROE of 25%, with recurring revenues comprising 56% of total revenue, which boosts growth predictability.

The company is a market leader in ARPU for full-service broking and maintains strong leadership in wealth management, asset and private wealth management, capital markets, and housing finance.

Sharma believes the company is perfectly positioned to take advantage of India’s growing shift toward financial savings.

He said their focus on AI, innovative platforms like RiiSE, expansion of private wealth services, and launching new private equity funds all set the stage for strong future growth.

Motilal Oswal stock has shed 7.8% year-to-date. At the time of writing, the company’s shares were trading 2.76% lower at ₹854.45

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