ALKEM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | ALKEM | Market Cap | 65,522 Cr. | Current Price | 5,479 ₹ | High / Low | 5,934 ₹ |
| Stock P/E | 29.6 | Book Value | 1,143 ₹ | Dividend Yield | 0.83 % | ROCE | 19.5 % |
| ROE | 19.9 % | Face Value | 2.00 ₹ | DMA 50 | 5,465 ₹ | DMA 200 | 5,450 ₹ |
| Chg in FII Hold | 0.18 % | Chg in DII Hold | -0.15 % | PAT Qtr | 654 Cr. | PAT Prev Qtr | 724 Cr. |
| RSI | 49.6 | MACD | -7.09 | Volume | 1,97,906 | Avg Vol 1Wk | 94,770 |
| Low price | 4,716 ₹ | High price | 5,934 ₹ | PEG Ratio | 2.12 | Debt to equity | 0.06 |
| 52w Index | 62.7 % | Qtr Profit Var | -3.35 % | EPS | 196 ₹ | Industry PE | 31.6 |
📊 Chart Patterns: ALKEM is trading in a consolidation zone between ₹5,450–₹5,600, with resistance near ₹5,600 and support around ₹5,465 (50 DMA). Trendlines suggest sideways consolidation after a recent pullback.
📈 Moving Averages: Current price (₹5,479) is above both 50 DMA (₹5,465) and 200 DMA (₹5,450), showing short-term support but limited momentum.
📊 RSI: At 49.6, RSI indicates neutral momentum, leaning slightly bearish.
📉 MACD: Negative at -7.09, confirming bearish crossover and short-term weakness.
📊 Bollinger Bands: Price is mid-band, suggesting limited volatility with potential expansion toward ₹5,600.
📊 Volume Trends: Current volume (1,97,906) is higher than 1-week average (94,770), showing strong participation despite consolidation.
🚀 Momentum Signals: Neutral-to-bearish bias, with potential rebound if price sustains above ₹5,500.
🎯 Entry Zone: ₹5,450–₹5,480 (near DMA support).
🎯 Exit Zone: ₹5,600–₹5,650 (resistance zone and upper Bollinger band).
📌 Trend Status: Consolidating with mild bearish tilt.
Positive
- Strong ROCE (19.5%) and ROE (19.9%) highlight efficient capital use.
- EPS at ₹196 supports earnings visibility.
- Low debt-to-equity ratio (0.06) ensures financial stability.
- FII holdings increased (+0.18%), reflecting foreign investor confidence.
Limitation
- Quarterly PAT declined from ₹724 Cr. to ₹654 Cr., showing earnings pressure.
- MACD negative crossover indicates short-term weakness.
- PEG ratio (2.12) suggests moderately expensive growth prospects.
Company Negative News
- DII holdings decreased (-0.15%), showing reduced domestic institutional support.
- Quarterly profit variation (-3.35%) highlights earnings inconsistency.
Company Positive News
- Stock trading near 52-week high (₹5,934) reflects strong investor sentiment.
- Dividend yield of 0.83% adds shareholder value.
Industry
- Industry PE at 31.6 is slightly higher than ALKEM’s PE (29.6), suggesting fair valuation.
- Pharma sector remains resilient with global demand growth.
Conclusion
ALKEM is consolidating with neutral-to-bearish signals. Entry near ₹5,450–₹5,480 offers limited upside toward ₹5,600–₹5,650. Strong fundamentals support long-term stability, but short-term weakness requires cautious accumulation until momentum indicators turn positive.
This can be adapted into a pharma sector consolidation template with benchmarking overlays, so you can compare ALKEM against AJANTPHARM, APLLTD, and SUNPHARMA for relative strength.