ALKEM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | ALKEM | Market Cap | 64,565 Cr. | Current Price | 5,400 ₹ | High / Low | 5,934 ₹ |
| Stock P/E | 29.2 | Book Value | 1,143 ₹ | Dividend Yield | 0.83 % | ROCE | 19.5 % |
| ROE | 19.9 % | Face Value | 2.00 ₹ | DMA 50 | 5,456 ₹ | DMA 200 | 5,445 ₹ |
| Chg in FII Hold | 0.18 % | Chg in DII Hold | -0.15 % | PAT Qtr | 654 Cr. | PAT Prev Qtr | 724 Cr. |
| RSI | 48.7 | MACD | -2.37 | Volume | 1,54,870 | Avg Vol 1Wk | 1,42,558 |
| Low price | 4,716 ₹ | High price | 5,934 ₹ | PEG Ratio | 2.09 | Debt to equity | 0.06 |
| 52w Index | 56.2 % | Qtr Profit Var | -3.35 % | EPS | 196 ₹ | Industry PE | 30.1 |
📈 Chart Patterns & Moving Averages
ALKEM is trading at ₹5,400, slightly below its 50 DMA (₹5,456) and 200 DMA (₹5,445). This indicates neutral momentum with price consolidating near key averages. Support lies near ₹5,350–5,400, while resistance is seen at ₹5,750–5,850.
📊 RSI & MACD
RSI at 48.7 reflects neutral momentum, leaning slightly bearish. MACD at -2.37 is negative, signaling mild short-term weakness.
📉 Bollinger Bands
Price is near the mid-band, showing consolidation. A breakout above ₹5,750 could trigger recovery, while a dip below ₹5,350 may invite selling pressure.
🔎 Volume Trends
Current volume (1,54,870) is slightly above the 1-week average (1,42,558), indicating stable participation. No strong breakout signals yet.
⚡ Momentum Signals
Short-term momentum is mildly bearish due to negative MACD. Entry zone: ₹5,350–5,400. Exit zone: ₹5,750–5,850 if resistance breaks, with stop-loss below ₹5,300.
📌 Trend Status
The stock is consolidating near support levels, awaiting stronger volume for breakout confirmation.
✅ Positive
- Strong ROCE (19.5%) and ROE (19.9%) highlight efficient capital use.
- Debt-to-equity ratio at 0.06 indicates virtually debt-free balance sheet.
- EPS at ₹196 supports earnings visibility.
- FII holdings increased (+0.18%), showing foreign investor confidence.
⚠️ Limitation
- Quarterly PAT declined (₹654 Cr vs ₹724 Cr), showing earnings pressure.
- MACD negative (-2.37) indicates short-term weakness.
- DII holdings decreased (-0.15%), showing cautious domestic sentiment.
- PEG ratio (2.09) suggests expensive valuation relative to growth.
❌ Company Negative News
- Quarterly profit variation (-3.35%) reflects earnings slowdown.
🌟 Company Positive News
- Strong fundamentals with high ROE and ROCE.
- Dividend yield of 0.83% provides modest income support.
🏭 Industry
- Industry P/E at 30.1, slightly higher than ALKEM’s P/E (29.2), suggesting fair valuation.
- Pharma sector outlook remains stable with long-term demand drivers.
📌 Conclusion
ALKEM is fundamentally strong but currently consolidating with mild bearish signals. Entry near ₹5,350–5,400 offers margin of safety, while profit booking is advised around ₹5,750–5,850 unless breakout occurs above ₹5,900 with strong volume. Suitable for swing trades and medium-term investors with disciplined stop-loss management.
This version is tuned for swing trade analysis with valuation overlays. Would you like me to also prepare a long-term investment horizon (3–5 years) view for ALKEM with partial exit guidance?