Aavas tests ₹1,120 base after long downtrend

Aavas Financiers , AAVAS is trading near ₹1,137 after a prolonged decline from the ₹1,500 area. The latest price action shows the stock attempting to build a base around ₹1,100–₹1,120. This zone has attracted buyers recently and is now the most important support area on the daily chart. Price is marginally above the 20-day moving average near ₹1,135 and the 50-day moving average near ₹1,118. This is an early sign of stabilisation, but the broader structure still shows lower highs and lower lows. A base is forming, yet a trend reversal needs price confirmation above nearby swing resistance. ₹1,150–₹1,170 is the first resistance zone. A sustained close above it can improve the structure and open room toward ₹1,220–₹1,250. The Z-score is near neutral, suggesting the stock is neither stretched on the upside nor deeply oversold at this point. A close below ₹1,118 would put ₹1,100 back at risk. If ₹1,100 fails, the recent low area near ₹1,070 becomes important. The setup is currently a base-building attempt: ₹1,100–₹1,120 is support, while ₹1,150–₹1,170 is the confirmation zone.