ATUL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.8

📊 Chart Patterns & Trend: ATUL is currently consolidating after a sharp decline from its 52-week high of 7,793 ₹. The price is hovering near the 50 DMA (5,945 ₹), but below the 200 DMA (6,339 ₹), indicating medium-term weakness.

📈 Moving Averages:

- 50 DMA (5,945 ₹) is slightly below the current price (6,007 ₹), suggesting short-term support.

- 200 DMA (6,339 ₹) is above the current price, acting as resistance.

This setup reflects a sideways consolidation phase.

📉 RSI: At 46.1, RSI is neutral, neither overbought nor oversold. Momentum is weak but not bearish.

📉 MACD: Negative (-27.1), showing bearish crossover and lack of strong upward momentum.

📊 Bollinger Bands: Price is trading near the mid-band, indicating consolidation. No breakout signals yet.

📊 Volume Trends: Current volume (23,069) is below the 1-week average (39,860), suggesting reduced participation and lack of strong momentum.

🎯 Entry Zone: 5,850–5,950 ₹ (near 50 DMA support).

🎯 Exit Zone: 6,350–6,400 ₹ (near 200 DMA resistance).

⚡ Support Levels: 5,850 ₹ and 4,752 ₹ (major support).

⚡ Resistance Levels: 6,350 ₹ and 7,000 ₹.

Positive

• Strong quarterly profit growth (PAT up 33.8%).
• Debt-free balance sheet (Debt-to-equity: 0.00).
• EPS of 166 ₹ supports long-term valuation.
• Trading above 50 DMA, showing short-term resilience.

Limitation

• High P/E (36.3) compared to industry average (26.6).
• Weak ROE (8.64%) and ROCE (11.9%).
• Negative PEG ratio (-4.48) indicates poor growth-to-valuation alignment.
• Decline in FII (-0.46%) and DII (-0.02%) holdings.

Company Negative News

• Weak investor sentiment due to falling institutional holdings.
• MACD bearish crossover signals short-term weakness.

Company Positive News

• Quarterly PAT jumped from 97.7 Cr. to 172 Cr.
• Strong EPS and consistent dividend payout (0.43% yield).
• Debt-free structure adds financial stability.

Industry

• Industry P/E at 26.6, lower than ATUL’s valuation, suggesting premium pricing.
• Chemicals sector showing cyclical demand recovery.

Conclusion

⚖️ ATUL is in a consolidation phase with neutral RSI and bearish MACD. Short-term traders may consider entry near 5,850–5,950 ₹ with exits around 6,350–6,400 ₹. Long-term investors should weigh high valuations against strong profit growth and debt-free balance sheet. The stock is currently consolidating, awaiting a breakout above 200 DMA for trend reversal.