BASF - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | BASF | Market Cap | 14,853 Cr. | Current Price | 3,418 ₹ | High / Low | 5,424 ₹ |
| Stock P/E | 38.4 | Book Value | 881 ₹ | Dividend Yield | 0.58 % | ROCE | 18.0 % |
| ROE | 13.7 % | Face Value | 10.0 ₹ | DMA 50 | 3,637 ₹ | DMA 200 | 4,187 ₹ |
| Chg in FII Hold | -0.01 % | Chg in DII Hold | -0.01 % | PAT Qtr | 105 Cr. | PAT Prev Qtr | 101 Cr. |
| RSI | 41.0 | MACD | -64.0 | Volume | 28,872 | Avg Vol 1Wk | 23,806 |
| Low price | 2,907 ₹ | High price | 5,424 ₹ | PEG Ratio | -5.76 | Debt to equity | 0.04 |
| 52w Index | 20.3 % | Qtr Profit Var | 0.12 % | EPS | 92.5 ₹ | Industry PE | 25.7 |
📈 Chart & Trend Analysis: BASF is trading below both its 50 DMA (3,637 ₹) and 200 DMA (4,187 ₹), with the current price at 3,418 ₹. This indicates bearish bias and short-term weakness.
📊 Momentum Indicators: RSI at 41.0 shows weak momentum, leaning towards oversold territory. MACD at -64.0 confirms bearish crossover, signaling continued short-term weakness.
📉 Bollinger Bands & Volume: Price is near the lower band, suggesting potential support but also weakness. Current volume (28,872) is slightly above weekly average (23,806), showing mild participation but no strong buying interest.
🔑 Support & Resistance Zones:
- Support: 3,400 ₹ (near-term), 2,907 ₹ (major low)
- Resistance: 3,637 ₹ (50 DMA), 3,800–4,000 ₹ (trendline resistance), 4,187 ₹ (200 DMA)
Optimal Entry: 3,350–3,400 ₹ (near support)
Optimal Exit: 3,600–3,800 ₹ (resistance zone)
📌 Trend Status: The stock is consolidating with bearish bias, showing weak momentum and trading below key moving averages.
Positive
- Debt-to-equity ratio of 0.04 indicates strong financial stability.
- ROCE (18.0%) and ROE (13.7%) show decent capital efficiency.
- EPS of 92.5 ₹ supports valuation strength.
Limitation
- Stock P/E (38.4) is higher than industry average (25.7), suggesting stretched valuation.
- PEG ratio (-5.76) indicates poor earnings growth relative to valuation.
- Weak RSI and negative MACD show lack of momentum.
Company Negative News
- FII holding decreased (-0.01%) and DII holding decreased (-0.01%), showing reduced institutional confidence.
- Stock trading below both 50 DMA and 200 DMA, reflecting short-term weakness.
Company Positive News
- Quarterly PAT improved slightly (105 Cr. vs 101 Cr.), showing earnings stability.
- Dividend yield of 0.58% provides minor shareholder returns.
Industry
- Industry PE at 25.7 is lower than BASF’s PE (38.4), suggesting premium valuation compared to peers.
- Chemicals sector outlook remains cyclical, with demand tied to industrial growth and global commodity trends.
Conclusion
⚖️ BASF is consolidating with bearish bias, trading below key moving averages with weak momentum signals. Fundamentals show financial stability and decent ROE/ROCE, but stretched valuation and poor growth metrics limit upside. Traders may consider entry near 3,350–3,400 ₹ with exits around 3,600–3,800 ₹, but momentum confirmation is needed before aggressive positioning.
Would you like me to extend this into a peer benchmarking overlay comparing BASF against other chemical sector stocks (valuation, ROE/ROCE, momentum) so you can see relative strength before deciding entry?