BASF - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.2

📊 Chart Patterns & Trend: BASF is in a corrective phase, trading well below its 50 DMA (4,249 ₹) and 200 DMA (4,644 ₹). The current price (3,898 ₹) is close to its 52-week low (3,786 ₹), indicating strong bearish pressure and reversal from prior highs.

📈 Moving Averages:

- Price below both 50 DMA and 200 DMA confirms bearish trend.

- Sustained weakness suggests resistance near 4,250–4,650 ₹.

📉 RSI: At 20.6, RSI is deeply oversold, signaling potential for a short-term bounce but overall weakness.

📉 MACD: Strongly negative (-137), confirming bearish crossover and downward momentum.

📊 Bollinger Bands: Price is hugging the lower band, showing oversold conditions and possible short-term support.

📊 Volume Trends: Current volume (13,193) is in line with average (13,074), suggesting steady but weak participation without strong buying interest.

🎯 Entry Zone: 3,850–3,900 ₹ (near support).

🎯 Exit Zone: 4,200–4,250 ₹ (near 50 DMA resistance).

⚡ Support Levels: 3,786 ₹ and 3,600 ₹.

⚡ Resistance Levels: 4,250 ₹ and 4,650 ₹.

Positive

• Strong ROCE (18.0%) and ROE (13.7%) indicate efficient capital use.
• Debt-to-equity ratio is very low (0.04), ensuring financial stability.
• Dividend yield of 0.52% provides modest income return.
• EPS of 92.2 ₹ supports long-term valuation.

Limitation

• High P/E (43.9) compared to industry average (26.6), making the stock expensive.
• PEG ratio (-6.57) indicates poor growth-to-valuation alignment.
• Quarterly PAT declined from 147 Cr. to 101 Cr. (-21%).
• Stock trading near 52-week low with weak momentum.

Company Negative News

• Profit decline raises concerns about earnings stability.
• MACD strongly negative, confirming bearish momentum.
• FII holdings decreased (-0.07%), showing reduced foreign investor interest.

Company Positive News

• DII holdings increased (+0.12%), reflecting domestic investor support.
• Strong fundamentals with low debt and consistent dividend payout.
• Oversold RSI may trigger short-term recovery bounce.

Industry

• Industry P/E at 26.6, lower than BASF’s 43.9, suggesting overvaluation.
• Chemicals sector outlook remains cyclical with demand recovery potential.

Conclusion

⚖️ BASF is currently reversing with bearish signals from MACD and oversold RSI. Short-term traders may consider entry near 3,850–3,900 ₹ with exits around 4,200–4,250 ₹. The stock is in a corrective phase, consolidating near support, and requires a breakout above 4,250 ₹ to regain bullish momentum.