ABBOTINDIA - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.3

Technical Analysis Report

• Trend Status: Reversing (Bearish)
• Moving Averages: Price (₹29,125) is below both 50 DMA (₹30,572) and 200 DMA (₹30,704), indicating bearish trend
• RSI (30.2): Approaching oversold territory, potential for reversal
• MACD (-296): Strong bearish crossover, confirming downward momentum
• Bollinger Bands: Price near lower band, suggesting potential short-term bounce
• Volume: Above average (12.5K vs 6.7K), indicating increased activity during decline
• Support Zones: ₹28,400, ₹27,200
• Resistance Zones: ₹30,000, ₹30,700
• Entry Zone: ₹28,400–₹28,800 (oversold support)
• Exit Zone: ₹30,000–₹30,700 (resistance near 200 DMA)

Positive

• Strong fundamentals with ROCE (46.2%) and ROE (35.7%) indicating operational excellence
• Low debt-to-equity ratio (0.05) reflects financial strength
• Dividend yield of 1.62% adds shareholder value

Limitation

• Price trading below both 50 and 200 DMA confirms bearish trend
• RSI near oversold but not yet reversing
• MACD strongly negative, suggesting continued short-term weakness

Company Negative News

• Stock has declined ~21% from its 52-week high
• DII holding slightly reduced (-0.07%), showing cautious domestic sentiment

Company Positive News

• Quarterly PAT stable (₹366 Cr vs ₹367 Cr), indicating earnings consistency
• EPS of ₹683 supports premium valuation

Industry

• Pharmaceutical sector remains defensive with stable demand outlook
• Industry P/E of 33.1 suggests ABBOTINDIA trades at a premium

Conclusion

• ABBOTINDIA is in a bearish reversal phase with oversold signals emerging
• Entry near ₹28,400–₹28,800 could offer a tactical bounce opportunity
• Exit near ₹30,000–₹30,700 aligns with resistance and moving averages
• Investors should watch for RSI reversal and MACD flattening to confirm trend change