ASIANPAINT - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.0

Technical Analysis Report

• Trend Status: Trending upward
• Moving Averages: Price (₹2,506) is above both 50 DMA (₹2,451) and 200 DMA (₹2,460), indicating bullish alignment
• RSI (59.9): Bullish momentum, nearing overbought zone
• MACD (26.6): Positive crossover, confirming upward momentum
• Bollinger Bands: Price near upper band, suggesting potential short-term resistance
• Volume: Below average (6.88L vs 8.34L), showing reduced participation
• Support Zones: ₹2,460, ₹2,420
• Resistance Zones: ₹2,550, ₹2,620
• Entry Zone: ₹2,460–₹2,490 (near support)
• Exit Zone: ₹2,550–₹2,620 (near resistance)

Positive

• Price above both key moving averages confirms bullish trend
• MACD and RSI support continued upward momentum
• Strong ROCE (27.3%) and ROE (20.7%) reflect operational efficiency
• Low debt-to-equity ratio (0.06) indicates financial discipline
• EPS of ₹36.5 and dividend yield of 0.99% offer shareholder value

Limitation

• Volume below average, suggesting weak conviction
• High P/E (63.8) and PEG (9.03) imply premium valuation

Company Negative News

• Quarterly PAT declined from ₹1,100 Cr to ₹817 Cr (-7.53%)
• FII holding dropped by 0.21%, reflecting cautious foreign sentiment

Company Positive News

• DII holding increased by 0.52%, showing domestic institutional confidence
• Stock has gained 45.5% from its 52-week low

Industry

• Paints and coatings sector benefits from housing demand and infrastructure growth
• Industry P/E of 42.4 suggests ASIANPAINT trades at a significant premium

Conclusion

• ASIANPAINT is in a bullish trend with strong technical indicators and long-term fundamentals
• Entry near ₹2,460–₹2,490 offers a tactical opportunity
• Exit near ₹2,550–₹2,620 is ideal for short-term gains
• Investors should monitor volume and RSI for signs of trend continuation or exhaustion