⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ASIANPAINT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | ASIANPAINT | Market Cap | 2,30,318 Cr. | Current Price | 2,401 ₹ | High / Low | 2,986 ₹ |
| Stock P/E | 57.3 | Book Value | 199 ₹ | Dividend Yield | 1.03 % | ROCE | 27.3 % |
| ROE | 20.7 % | Face Value | 1.00 ₹ | DMA 50 | 2,702 ₹ | DMA 200 | 2,600 ₹ |
| Chg in FII Hold | 1.14 % | Chg in DII Hold | -0.42 % | PAT Qtr | 1,146 Cr. | PAT Prev Qtr | 956 Cr. |
| RSI | 22.2 | MACD | -93.5 | Volume | 8,57,382 | Avg Vol 1Wk | 28,13,749 |
| Low price | 2,125 ₹ | High price | 2,986 ₹ | PEG Ratio | 8.11 | Debt to equity | 0.08 |
| 52w Index | 32.1 % | Qtr Profit Var | 3.80 % | EPS | 39.4 ₹ | Industry PE | 33.9 |
📈 Technical Analysis
- Chart Patterns: Price (2,401 ₹) is trading well below both 50 DMA (2,702 ₹) and 200 DMA (2,600 ₹), indicating strong weakness.
- Moving Averages: Clear downward bias as price remains under key averages.
- RSI: At 22.2, oversold territory, signaling potential rebound.
- MACD: Negative (-93.5), bearish crossover continues.
- Bollinger Bands: Price near lower band, support seen around 2,350–2,400 ₹.
- Volume Trends: Current volume (8.57L) is far below 1-week average (28.1L), showing weak participation.
🎯 Momentum & Trade Zones
- Support Levels: 2,350–2,400 ₹ (near Bollinger lower band), 2,125 ₹ (recent low).
- Resistance Levels: 2,600 ₹ (200 DMA), 2,702 ₹ (50 DMA), 2,800–2,900 ₹ (psychological barrier).
- Entry Zone: 2,350–2,400 ₹ (accumulation near support).
- Exit Zone: 2,600–2,700 ₹ (profit booking near resistance).
- Trend: Strong downtrend with oversold signals; reversal possible if price sustains above 2,600–2,700 ₹.
✅ Positive
- ROCE (27.3%) and ROE (20.7%) reflect strong efficiency.
- Debt-to-equity ratio at 0.08, very low leverage.
- Dividend yield of 1.03% provides shareholder returns.
- Quarterly PAT improved (1,146 Cr. vs 956 Cr.), showing earnings growth.
- FII holdings increased (+1.14%), reflecting foreign investor confidence.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA, reflecting technical weakness.
- High P/E (57.3) compared to industry average (33.9), suggesting overvaluation.
- PEG ratio (8.11) indicates expensive valuation relative to growth.
- Volume participation is weak, reducing conviction in price moves.
📉 Company Negative News
- DII holdings decreased (-0.42%), showing reduced domestic institutional confidence.
- MACD remains negative, reflecting weak momentum.
📊 Company Positive News
- Quarterly PAT improved significantly (1,146 Cr. vs 956 Cr.).
- FII holdings increased (+1.14%), reflecting foreign support.
- Strong ROCE and ROE highlight operational efficiency.
🏭 Industry
- Industry P/E at 33.9, much lower than company’s 57.3, suggesting sector peers may be more attractively priced.
- Paints and coatings sector demand remains steady, driven by housing, infrastructure, and industrial growth.
📝 Conclusion
- ASIANPAINT is in a downtrend, trading well below key moving averages.
- Optimal entry near 2,350–2,400 ₹ with exit around 2,600–2,700 ₹.
- Strong fundamentals and earnings growth make it attractive long term, but high valuation and weak technicals limit short-term upside.
- Medium-term investors should wait for breakout above 2,600–2,700 ₹ to confirm reversal trend.