GRASIM - IntraDay Trade Analysis with Live Signals

Last Updated Time : 20 Dec 25, 07:02 am

IntraDay Trade Rating: 3.6

📊 Analysis: GRASIM shows moderate intraday potential. RSI at 56.7 and positive MACD (7.87) indicate mild bullish sentiment. Current price (2,814 ₹) is above both 50 DMA (2,783 ₹) and 200 DMA (2,726 ₹), reflecting technical support. However, volume (2.61L) is below average weekly volume (4.94L), limiting conviction. Fundamentals are weak (ROCE 1.52%, ROE 0.35%) and extremely high P/E (557) compared to industry PE (33.2) raises valuation concerns. Quarterly PAT recovery from -118 Cr. to 805 Cr. is a positive, but overall earnings growth remains modest (+6.31%).

💹 Optimal Buy Price: 2,805–2,815 ₹ (near DMA support).

🎯 Profit-Taking Exit Levels: 2,840–2,860 ₹ (short-term resistance zone).

🛡️ Stop-Loss / Loss Protection: 2,780 ₹ (below 50 DMA support).

⏱️ If Already Holding: Exit intraday if price fails to sustain above 2,840 ₹ with volume confirmation, or if RSI dips below 54 with weakening MACD. Hold only if momentum continues above 2,860 ₹, targeting 2,880–2,900 ₹.

Positive

• ✅ Quarterly PAT recovery from -118 Cr. to 805 Cr. shows operational turnaround.
• ✅ Price above 50 DMA and 200 DMA indicates technical support.
• ✅ FII holding increased (+0.58%), showing foreign investor confidence.
• ✅ Strong book value (808 ₹) provides margin of safety.

Limitation

• ⚠️ ROCE (1.52%) and ROE (0.35%) are very weak.
• ⚠️ High P/E (557) compared to industry PE (33.2) indicates severe overvaluation.
• ⚠️ Volume below average reduces intraday conviction.
• ⚠️ DII holding decreased (-0.64%), showing domestic investor caution.
• ⚠️ PEG ratio (-9.23) suggests valuation concerns.

Company Negative News

• ❌ No major external negative news reported, but weak fundamentals and valuation risks are concerns.

Company Positive News

• 🌟 PAT turnaround from losses to profit in the latest quarter.
• 🌟 FII inflows support investor confidence.

Industry

• 🏭 Industry PE at 33.2 is far below GRASIM’s PE (557), highlighting valuation mismatch.
• 🏭 Sector outlook stable, supported by demand in cement, textiles, and diversified businesses.

Conclusion

📌 GRASIM is a moderate candidate for intraday trading with technical support from DMA levels and mild bullish momentum. However, weak fundamentals, stretched valuation, and below-average volume limit conviction. Suitable only for cautious intraday traders with tight stop-loss discipline, aiming for short scalps near resistance zones rather than aggressive intraday runs.

Would you like me to extend this into a basket overlay with peer benchmarking against other diversified conglomerates (like UltraTech, Aditya Birla Capital, Shree Cement) to compare intraday strength and sector rotation opportunities?