ASTRAZEN - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | ASTRAZEN | Market Cap | 21,250 Cr. | Current Price | 8,496 ₹ | High / Low | 10,691 ₹ |
| Stock P/E | 102 | Book Value | 320 ₹ | Dividend Yield | 0.38 % | ROCE | 33.4 % |
| ROE | 23.6 % | Face Value | 2.00 ₹ | DMA 50 | 8,706 ₹ | DMA 200 | 8,663 ₹ |
| Chg in FII Hold | -0.03 % | Chg in DII Hold | 0.29 % | PAT Qtr | 31.6 Cr. | PAT Prev Qtr | 58.1 Cr. |
| RSI | 41.1 | MACD | -70.4 | Volume | 4,062 | Avg Vol 1Wk | 5,522 |
| Low price | 6,502 ₹ | High price | 10,691 ₹ | PEG Ratio | 2.36 | Debt to equity | 0.04 |
| 52w Index | 47.6 % | Qtr Profit Var | -42.3 % | EPS | 80.4 ₹ | Industry PE | 27.6 |
📈 Chart & Trend Analysis: The stock is trading below its 50 DMA (8,706 ₹) and 200 DMA (8,663 ₹), with the current price at 8,496 ₹. This suggests mild bearish pressure as price is under both averages, though not far below.
📊 Momentum Indicators: RSI at 41.1 indicates weak momentum, leaning towards oversold but not yet at reversal levels. MACD at -70.4 confirms bearish crossover, signaling short-term weakness.
📉 Bollinger Bands & Volume: Price is closer to the lower band, suggesting potential support near 8,300–8,500 ₹. Volume (4,062) is below the weekly average (5,522), showing reduced participation and lack of strong buying interest.
🔑 Support & Resistance Zones:
- Support: 8,300 ₹ (near lower Bollinger band), 6,502 ₹ (major low)
- Resistance: 8,700–8,900 ₹ (DMA cluster), 9,500 ₹ (trendline resistance)
Optimal Entry: 8,300–8,500 ₹ (if support holds)
Optimal Exit: 8,900–9,500 ₹ (resistance zone)
📌 Trend Status: The stock is consolidating with bearish bias, showing weak momentum but not a full reversal yet.
Positive
- Strong ROCE (33.4%) and ROE (23.6%) indicate efficient capital use.
- Low debt-to-equity ratio (0.04) ensures financial stability.
- Industry PE (27.6) is much lower than stock PE, suggesting premium valuation due to growth potential.
Limitation
- High P/E (102) compared to industry average (27.6) makes valuation stretched.
- Weak RSI and negative MACD show lack of momentum.
- Quarterly profit dropped sharply (-42.3%), raising concerns on earnings consistency.
Company Negative News
- Recent quarterly PAT fell from 58.1 Cr. to 31.6 Cr., showing earnings pressure.
- FII holding decreased (-0.03%), indicating reduced foreign investor confidence.
Company Positive News
- DII holding increased (+0.29%), showing domestic institutional support.
- Strong fundamentals with consistent ROE and ROCE performance.
Industry
- Industry PE at 27.6 suggests peers are valued lower, but Astrazen commands premium due to brand strength.
- Sector outlook remains stable with healthcare demand resilient.
Conclusion
⚖️ Astrazen is currently consolidating with bearish bias, trading below key moving averages and showing weak momentum signals. While fundamentals remain strong (ROE, ROCE, low debt), stretched valuations and declining quarterly profits limit upside in the near term. Traders may consider entry near 8,300–8,500 ₹ with exits around 8,900–9,500 ₹, but caution is advised until momentum indicators improve.
Would you like me to also prepare a basket overlay with peer benchmarking (comparing Astrazen against sector peers on valuation, momentum, and ROE/ROCE) so you can see relative strength before deciding entry?