ATUL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 2.6

📉 ATUL Ltd is currently in a consolidation phase with bearish undertones. Technical indicators suggest caution for short-term traders.

📊 Technical Analysis Summary

• Trend Status: Consolidating near support zones
• RSI (34.1): Approaching oversold territory — weak momentum
• MACD (-104): Bearish crossover — downward pressure persists
• Volume: Below 1-week average — low conviction in price moves
• DMA 50 & 200: Price below both — bearish signal
• Bollinger Bands: Price near lower band — possible bounce but not confirmed

🎯 Entry & Exit Zones

• Support Levels: ₹5,800, ₹5,650, ₹5,500
• Resistance Levels: ₹6,150, ₹6,300, ₹6,500
• Optimal Entry: ₹5,800–₹5,900 (if RSI rebounds)
• Exit Target: ₹6,200–₹6,300 (short-term resistance)

✅ Positive

• Debt-free company with strong financial discipline
• Quarterly PAT jumped from ₹97.7 Cr to ₹172 Cr
• EPS of ₹166 indicates robust earnings
• ROCE of 11.9% reflects decent capital efficiency

⚠️ Limitation

• Stock trading below both 50 DMA and 200 DMA
• Negative PEG ratio (-4.40) suggests valuation concerns
• Decline in FII and DII holdings — sentiment weakening
• Low dividend yield (0.43%)

📉 Company Negative News

• Bearish technical indicators — MACD and RSI both weak
• Volume decline suggests lack of buying interest

📈 Company Positive News

• Strong quarterly profit growth
• Zero debt enhances financial resilience

🏭 Industry

• Sector: Specialty Chemicals
• Industry P/E: 33.1 vs ATUL’s P/E: 35.6 — slightly overvalued
• Stable demand outlook, but cyclical risks remain

🧾 Conclusion

• ATUL is consolidating with bearish momentum
• Short-term entry may be considered near ₹5,800 with tight stop-loss
• Exit near ₹6,200–₹6,300 if momentum improves
• Long-term investors should wait for trend reversal confirmation