ALKYLAMINE - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 2.4

📊 Chart Patterns: ALKYLAMINE is trading well below its 50 DMA (1,752 ₹) and 200 DMA (1,906 ₹), showing strong bearishness. Current price (1,609 ₹) is near support at 1,508–1,600 ₹, with resistance around 1,752–1,800 ₹ and major resistance at 1,906 ₹.

📈 Moving Averages: Price below both short- and long-term averages confirms a downward trend. Sustained move above 1,752 ₹ is required for recovery.

📉 RSI: At 22.5, RSI is in oversold territory, suggesting potential for a short-term bounce.

📉 MACD: Deeply negative at -56.2, confirming strong bearish momentum.

📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible mean reversion.

📊 Volume Trends: Current volume (18,955) is lower than average weekly volume (24,540), showing weak participation and cautious sentiment.

📌 Momentum Signals: Short-term bounce possible from 1,508–1,600 ₹ support, but trend remains weak unless price sustains above 1,752–1,800 ₹.

🎯 Entry Zone: 1,508–1,600 ₹ (near strong support, oversold RSI).

🎯 Exit Zone: 1,752–1,800 ₹ (short-term resistance), extended resistance at 1,906 ₹.

🔎 Trend Status: Currently bearish and consolidating near support. Reversal requires breakout above 1,906 ₹.

Positive

• Debt-free balance sheet (Debt-to-equity: 0.00).
• Strong ROCE (18.7%) and ROE (14.0%) indicate efficient capital use.
• Dividend yield of 0.64% provides income support.
• FII (+0.18%) and DII (+0.28%) holdings increased, showing institutional confidence.

Limitation

• Stock P/E (45.2) is much higher than industry PE (26.6), indicating expensive valuation.
• PEG ratio (-7.50) suggests poor valuation relative to growth.
• Price trading below both 50 DMA and 200 DMA.
• Weak volume participation compared to average.

Company Negative News

• Quarterly PAT declined from 49.4 Cr. to 42.9 Cr. (-9.52%).
• Stock has lost significant value from its 52-week high (2,449 ₹ to 1,609 ₹).

Company Positive News

• Debt-free structure provides financial stability.
• EPS of 35.6 ₹ supports earnings base despite recent profit decline.
• Institutional investors increased holdings, reflecting confidence in long-term prospects.

Industry

• Industry PE at 26.6 is lower than ALKYLAMINE’s P/E, highlighting premium valuation.
• Chemical sector outlook remains positive with steady demand drivers.

Conclusion

⚖️ ALKYLAMINE is consolidating near strong support with oversold RSI but weak momentum. Traders may consider entry around 1,508–1,600 ₹ with exit near 1,752–1,800 ₹. Long-term investors should be cautious due to stretched valuations and declining profitability, waiting for sustained breakout above 1,906 ₹ before accumulation.