ASTERDM - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.7

📊 Chart Patterns: ASTERDM is trading below its 50 DMA (649 ₹) but near its 200 DMA (596 ₹), reflecting short-term weakness with long-term support. Current price (598 ₹) is near support at 590–600 ₹, with stronger support at 560–570 ₹ and resistance around 649–670 ₹.

📈 Moving Averages: Price below the 50 DMA but holding near the 200 DMA suggests consolidation with bearish bias.

📉 RSI: At 26.7, RSI is in oversold territory, indicating potential for a short-term bounce.

📉 MACD: Negative at -18.4, confirming bearish momentum in the short term.

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

📊 Volume Trends: Current volume (5,99,870) is higher than average weekly volume (5,34,328), showing increased participation near support zones.

📌 Momentum Signals: Short-term bounce possible from 590–600 ₹ support, but trend remains weak unless price sustains above 649–670 ₹.

🎯 Entry Zone: 590–600 ₹ (near support, oversold RSI).

🎯 Exit Zone: 649–670 ₹ (short-term resistance), extended resistance at 700–732 ₹.

🔎 Trend Status: Currently consolidating with bearish bias. Reversal requires breakout above 670–700 ₹.

Positive

• Exceptional ROCE (139%) and ROE (200%) highlight strong efficiency and profitability ratios.
• Quarterly PAT improved (105 Cr. vs 83.8 Cr.).
• EPS of 5.79 ₹ supports earnings base.
• DII holdings increased (+1.04%), showing domestic institutional support.

Limitation

• High P/E ratio (91.8) compared to industry PE (51.8), indicating expensive valuation.
• RSI in oversold territory, reflecting weak momentum.
• Price trading below 50 DMA, showing short-term weakness.
• Debt-to-equity ratio of 0.28 indicates moderate leverage.

Company Negative News

• Quarterly PAT declined sequentially (105 Cr. vs 83.8 Cr. previously, but weaker trend vs prior highs).
• Stock corrected from its 52-week high (732 ₹ to 598 ₹).
• FII holdings decreased (-0.92%), showing reduced foreign investor confidence.

Company Positive News

• Quarterly profit growth (+16.8% YoY) shows operational improvement.
• DII holdings increased, reflecting domestic institutional confidence.
• PEG ratio of 0.30 suggests attractive valuation relative to growth.

Industry

• Industry PE at 51.8 is lower than ASTERDM’s P/E, highlighting premium valuation.
• Healthcare sector outlook remains strong with consistent demand drivers.

Conclusion

⚖️ ASTERDM is consolidating near support with oversold RSI and weak short-term momentum. Traders may consider entry around 590–600 ₹ with exit near 649–670 ₹. Long-term investors should be cautious due to stretched valuations but can hold for potential breakout above 700–732 ₹ for extended gains.