ASIANPAINT - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.7

📊 Chart Patterns: ASIANPAINT is trading above both its 50 DMA (2,726 ₹) and 200 DMA (2,560 ₹), reflecting medium- to long-term strength. Current price (2,799 ₹) is near support at 2,750–2,770 ₹, with resistance around 2,900–2,986 ₹.

📈 Moving Averages: Price above both averages indicates bullish bias. Sustained move above 2,900 ₹ could trigger fresh upside momentum.

📉 RSI: At 44.2, RSI is neutral, suggesting balanced momentum without strong overbought or oversold signals.

📈 MACD: Positive at 13.1, confirming bullish momentum and potential continuation of the uptrend.

📊 Bollinger Bands: Price is near the mid-band, indicating consolidation with potential breakout toward the upper band.

📊 Volume Trends: Current volume (4,24,876) is lower than average weekly volume (7,91,602), showing reduced participation and cautious sentiment.

📌 Momentum Signals: Short-term bounce possible from 2,750–2,770 ₹ support, with upside potential if price sustains above 2,900 ₹.

🎯 Entry Zone: 2,750–2,799 ₹ (near support, bullish MACD).

🎯 Exit Zone: 2,900–2,986 ₹ (short-term resistance).

🔎 Trend Status: Currently consolidating with bullish bias. Breakout above 2,986 ₹ could extend rally toward new highs.

Positive

• Strong ROCE (27.3%) and ROE (20.7%) highlight efficient capital use.
• EPS of 40.2 ₹ supports earnings strength.
• DII holdings increased (+0.52%), showing domestic institutional support.
• Low debt-to-equity ratio (0.08) ensures financial stability.

Limitation

• High P/E ratio (67.6) compared to industry PE (38.7), indicating expensive valuation.
• PEG ratio of 9.55 suggests poor valuation relative to growth.
• Volume participation lower than average, reflecting cautious sentiment.

Company Negative News

• Quarterly PAT declined (1,100 Cr. to 956 Cr.), showing earnings pressure.
• Valuation remains stretched compared to industry peers.

Company Positive News

• Quarterly profit growth (+29.6% YoY) shows strong operational performance despite sequential decline.
• DII holdings increased, reflecting domestic institutional confidence.
• Dividend yield of 0.91% adds shareholder value.

Industry

• Industry PE at 38.7 is much lower than ASIANPAINT’s P/E, highlighting premium valuation.
• Paints and coatings sector outlook remains positive with demand growth in housing and infrastructure.

Conclusion

⚖️ ASIANPAINT is consolidating near support with bullish bias supported by MACD and moving averages. Traders may consider entry around 2,750–2,799 ₹ with exit near 2,900–2,986 ₹. Long-term investors should be cautious of stretched valuations but can hold for potential breakout above 2,986 ₹ for extended gains.