ABBOTINDIA - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.3

📊 Chart Patterns & Trend: ABBOTINDIA is trading below both its 50 DMA (29,321 ₹) and 200 DMA (30,233 ₹), indicating weakness and a bearish undertone. Price action shows consolidation near 28,000 ₹ after a steep correction from highs of 37,000 ₹, with strong support around 25,260 ₹.

📈 Moving Averages: Current price (28,000 ₹) is below both moving averages, signaling short-term and medium-term weakness.

📉 RSI: At 37.0, RSI is near oversold territory, suggesting potential for a short-term bounce.

📊 MACD: Negative MACD (-498) confirms bearish momentum, highlighting caution for traders.

📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions. A bounce is possible if buying interest emerges.

📊 Volume Trends: Current volume (4,382) is slightly above 1-week average (3,639), showing modest participation but no strong accumulation signals.

🎯 Entry Zone: 27,500–28,000 ₹ (near support and oversold RSI).

🚪 Exit Zone: 29,500–30,000 ₹ (resistance near DMA levels).

⚠️ Stop Loss: 27,000 ₹ (below recent support).

📌 Overall Trend: Consolidating with bearish bias. A reversal requires sustained move above 29,500 ₹ with strong volume.

Positive

• Strong ROCE (46.2%) and ROE (35.7%).
• Low debt-to-equity ratio (0.05).
• Dividend yield of 1.70% provides income cushion.
• Quarterly PAT growth (366 Cr. → 415 Cr.).
• EPS of 710 ₹ indicates strong earnings base.

Limitation

• Stock trading below both 50 DMA and 200 DMA.
• RSI and MACD both indicate bearish momentum.
• PEG ratio of 1.88 suggests valuation is stretched relative to growth.
• Price corrected significantly from 37,000 ₹ highs.

Company Negative News

• DII holding reduced slightly (-0.07%).
• MACD negative, confirming short-term bearish momentum.

Company Positive News

• Quarterly profit growth of 15.8% shows operational improvement.
• Stable FII holding (0.00%).

Industry

• Industry PE at 30.6, lower than ABBOTINDIA’s P/E of 39.4.
• Pharmaceutical sector remains competitive with moderate growth outlook.

Conclusion

⚖️ ABBOTINDIA is consolidating near support levels with RSI suggesting potential rebound. Entry near 27,500–28,000 ₹ offers limited upside unless price breaks above 29,500–30,000 ₹ with strong volume. Fundamentally strong with high ROCE and ROE, but technically weak, making cautious accumulation advisable.