BASF - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.7

📉 BASF India is currently in a consolidation phase with bearish momentum. Technical indicators suggest caution, though long-term fundamentals remain relatively strong.

📊 Technical Analysis Summary

• Trend Status: Consolidating with downward bias
• RSI (39.1): Weak momentum, nearing oversold zone
• MACD (-49.7): Bearish crossover — continued downside pressure
• Volume: Below 1-week average — low participation
• DMA 50 & 200: Price below both — bearish signal
• Bollinger Bands: Price near lower band — potential for technical bounce

Sources: TradingView

TradingView

, ETMoney

ET Money

, Investing.com

Investing.com India

🎯 Entry & Exit Zones

• Support Levels: ₹4,325, ₹4,370, ₹4,403
• Resistance Levels: ₹4,481, ₹4,525, ₹4,560
• Optimal Entry: ₹4,325–₹4,400 (if RSI stabilizes)
• Exit Target: ₹4,525–₹4,560 (short-term resistance)

✅ Positive

• Strong ROCE (18.0%) and ROE (13.7%) — efficient capital utilization
• EPS of ₹98.4 — solid earnings base
• Low debt-to-equity ratio (0.04) — strong balance sheet
• Recent PAT improvement from ₹32.9 Cr to ₹147 Cr — recovery signs

⚠️ Limitation

• Price below 50 DMA and 200 DMA — bearish technical structure
• Negative PEG ratio (-7.00) — valuation concerns
• Low dividend yield (0.45%)
• Weak volume and momentum indicators

📉 Company Negative News

• Quarterly profit variation of -30.1% — earnings volatility
• FII holding declined slightly (-0.07%)

📈 Company Positive News

• Strong rebound in PAT this quarter
• Stable financials with minimal debt

🏭 Industry

• Sector: Specialty Chemicals
• Industry P/E: 33.1 vs BASF’s P/E: 46.8 — relatively overvalued
• Sector outlook remains cyclical with margin sensitivity

🧾 Conclusion

• BASF is consolidating with bearish momentum
• Short-term entry may be considered near ₹4,325 with tight stop-loss
• Exit near ₹4,525–₹4,560 if bounce materializes
• Long-term investors should monitor for trend reversal and volume confirmation