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AKZOINDIA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | AKZOINDIA | Market Cap | 12,956 Cr. | Current Price | 2,845 ₹ | High / Low | 3,916 ₹ |
| Stock P/E | 33.2 | Book Value | 495 ₹ | Dividend Yield | 3.47 % | ROCE | 41.7 % |
| ROE | 32.2 % | Face Value | 10.0 ₹ | DMA 50 | 3,140 ₹ | DMA 200 | 3,321 ₹ |
| Chg in FII Hold | 0.69 % | Chg in DII Hold | 6.81 % | PAT Qtr | 83.4 Cr. | PAT Prev Qtr | 91.0 Cr. |
| RSI | 16.8 | MACD | -124 | Volume | 29,798 | Avg Vol 1Wk | 44,965 |
| Low price | 2,659 ₹ | High price | 3,916 ₹ | PEG Ratio | 2.38 | Debt to equity | 0.03 |
| 52w Index | 14.8 % | Qtr Profit Var | -14.8 % | EPS | 437 ₹ | Industry PE | 33.9 |
📈 Technical Analysis
- Chart Patterns: Price (2,845 ₹) is below both 50 DMA (3,140 ₹) and 200 DMA (3,321 ₹), showing weakness.
- Moving Averages: Downward bias as stock trades under key averages.
- RSI: At 16.8, deeply oversold, strong potential rebound signal.
- MACD: Strongly negative (-124), bearish momentum persists.
- Bollinger Bands: Price near lower band, support seen around 2,650–2,700 ₹.
- Volume Trends: Current volume (29,798) is below 1-week average (44,965), showing weak participation.
🎯 Momentum & Trade Zones
- Support Levels: 2,659 ₹ (recent low), 2,700 ₹ (near Bollinger lower band).
- Resistance Levels: 3,140 ₹ (50 DMA), 3,321 ₹ (200 DMA), 3,400 ₹ (psychological barrier).
- Entry Zone: 2,650–2,700 ₹ (accumulation near oversold support).
- Exit Zone: 3,100–3,200 ₹ (profit booking near resistance).
- Trend: Currently reversing from oversold conditions; short-term bounce possible if RSI recovery sustains.
✅ Positive
- Strong ROCE (41.7%) and ROE (32.2%) reflect excellent efficiency.
- Debt-to-equity ratio at 0.03, virtually debt-free.
- Dividend yield of 3.47% provides attractive shareholder returns.
- DII holdings increased (+6.81%), showing strong domestic institutional confidence.
- EPS at 437 ₹ supports valuation strength.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA, reflecting technical weakness.
- High P/E (33.2) compared to industry average (33.9), slightly overvalued.
- PEG ratio (2.38) indicates expensive growth prospects.
- Volume participation is weak, reducing conviction in price moves.
📉 Company Negative News
- Quarterly PAT declined (83.4 Cr. vs 91.0 Cr.), profit variance at -14.8%.
- Weak trading volumes suggest limited investor interest in the short term.
📊 Company Positive News
- DII holdings surged (+6.81%), reflecting strong domestic support.
- Dividend yield of 3.47% provides consistent shareholder returns.
🏭 Industry
- Industry P/E at 33.9, in line with company’s 33.2, suggesting fair sector valuation.
- Paints and coatings sector remains resilient with demand driven by housing and infrastructure growth.
📝 Conclusion
- AKZOINDIA is oversold (RSI 16.8) and may see a short-term rebound.
- Optimal entry near 2,650–2,700 ₹ with exit around 3,100–3,200 ₹.
- Strong fundamentals with high efficiency and dividend yield, but weak technicals and declining profits limit upside.
- Medium-term investors should wait for breakout above 3,140–3,321 ₹ to confirm reversal trend.