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ATUL - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.6

Last Updated Time : 03 Feb 26, 05:01 pm

Technical Rating: 3.6

Stock Code ATUL Market Cap 17,533 Cr. Current Price 5,955 ₹ High / Low 7,793 ₹
Stock P/E 33.9 Book Value 1,973 ₹ Dividend Yield 0.41 % ROCE 11.9 %
ROE 8.64 % Face Value 10.0 ₹ DMA 50 6,004 ₹ DMA 200 6,264 ₹
Chg in FII Hold -0.86 % Chg in DII Hold 0.46 % PAT Qtr 121 Cr. PAT Prev Qtr 172 Cr.
RSI 49.7 MACD 11.0 Volume 10,017 Avg Vol 1Wk 22,181
Low price 4,752 ₹ High price 7,793 ₹ PEG Ratio -4.18 Debt to equity 0.00
52w Index 39.6 % Qtr Profit Var 30.8 % EPS 176 ₹ Industry PE 26.3

📈 Technical Analysis

  • Chart Patterns: Price is trading below both 50 DMA (6,004 ₹) and 200 DMA (6,264 ₹), showing weakness.
  • Moving Averages: Current price (5,955 ₹) is under both DMAs, indicating bearish bias.
  • RSI: Neutral at 49.7, neither overbought nor oversold.
  • MACD: Positive (11.0), suggesting mild bullish divergence despite weak price action.
  • Bollinger Bands: Price is near the lower band, showing potential for rebound but trend remains weak.
  • Volume Trends: Current volume (10,017) is well below 1-week average (22,181), indicating low participation.

📊 Momentum & Trend

  • Short-term Momentum: Mixed — MACD positive but price below DMAs.
  • Support Zone: 5,900 ₹ – 5,950 ₹ (near current levels).
  • Resistance Zone: 6,000 ₹ – 6,050 ₹ (near 50 DMA).
  • Trend: Consolidating with bearish bias.
  • Optimal Entry: Around 5,900 ₹ – 5,950 ₹ if support holds.
  • Optimal Exit: Around 6,000 ₹ – 6,050 ₹ unless breakout occurs.

✅ Positive

  • Debt-free company (Debt-to-equity 0.00).
  • Strong book value (1,973 ₹) compared to current price.
  • EPS of 176 ₹, showing profitability despite recent decline.

⚠️ Limitation

  • ROCE (11.9%) and ROE (8.64%) are modest compared to peers.
  • High P/E (33.9) vs industry average (26.3), suggesting overvaluation.
  • Quarterly PAT dropped from 172 Cr to 121 Cr, showing earnings pressure.

📉 Company Negative News

  • FII holding decreased (-0.86%), showing reduced foreign investor confidence.
  • Quarterly profit decline of 30.8% indicates operational challenges.

📈 Company Positive News

  • DII holding increased (+0.46%), showing domestic institutional support.
  • Stable dividend yield (0.41%) despite earnings pressure.

🏭 Industry

  • Industry PE at 26.3, lower than company PE, suggesting valuation premium.
  • Sector remains steady but company performance is lagging peers.

🔎 Conclusion

  • Stock is consolidating with bearish bias.
  • Entry near support (5,900 ₹ – 5,950 ₹) could be favorable for short-term rebound trades.
  • Exit near resistance (6,000 ₹ – 6,050 ₹) unless breakout confirms reversal.
  • Long-term investors should be cautious due to declining profits and stretched valuations.

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