AJANTPHARM - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.8

Technical Analysis Report

• Trend Status: Reversing downward
• Moving Averages: Price (₹2,538) is above 50 DMA (₹2,493) but below 200 DMA (₹2,593), indicating short-term strength with long-term caution
• RSI (52.0): Neutral zone, slight bullish tilt
• MACD (-14.9): Bearish crossover, signaling short-term weakness
• Bollinger Bands: Price near mid-band, suggesting consolidation without volatility
• Volume: Above average (1.06L vs 74.4K), showing increased interest
• Support Zones: ₹2,500, ₹2,450
• Resistance Zones: ₹2,580, ₹2,620
• Entry Zone: ₹2,500–₹2,520 (near support)
• Exit Zone: ₹2,580–₹2,620 (near resistance)

Positive

• Strong ROCE (33.0%) and ROE (25.7%) reflect excellent operational efficiency
• EPS of ₹74.9 supports robust earnings profile
• Price above 50 DMA suggests short-term strength
• DII holding increased by 0.40%, showing domestic institutional confidence

Limitation

• MACD in negative territory signals short-term bearishness
• Price below 200 DMA limits long-term bullish confirmation
• PEG ratio of 4.27 suggests premium valuation

Company Negative News

• FII holding declined by 0.33%, reflecting cautious foreign sentiment

Company Positive News

• Quarterly PAT improved from ₹193 Cr to ₹255 Cr (+8.02%)
• Dividend yield of 1.09% offers modest shareholder return
• Stock has gained 45.8% from its 52-week low

Industry

• Pharmaceutical sector remains resilient with strong export demand and domestic consumption
• Industry P/E of 33.1 aligns closely with AJANTPHARM’s valuation

Conclusion

• AJANTPHARM is in a reversal phase with mixed technical signals
• Entry near ₹2,500–₹2,520 offers a tactical setup
• Exit near ₹2,580–₹2,620 is ideal for short-term gains
• Investors should monitor MACD and RSI for confirmation of trend continuation or reversal