BATAINDIA - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.3

📊 Chart Patterns & Trend: BATAINDIA is in a corrective phase after a steep fall from its 52-week high of 1,479 ₹. The current price (951 ₹) is below both 50 DMA (1,034 ₹) and 200 DMA (1,166 ₹), reflecting strong bearish sentiment. The stock is consolidating near its recent low of 931 ₹ with weak momentum indicators.

📈 Moving Averages:

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

- Sustained weakness suggests resistance near 1,030–1,160 ₹.

- A breakout above 1,034 ₹ is needed to regain strength.

📉 RSI: At 29.7, RSI is oversold, indicating potential for a short-term bounce.

📉 MACD: Strongly negative (-28.5), confirming bearish crossover and downward momentum.

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

📊 Volume Trends: Current volume (55,228) is below the 1-week average (70,652), showing reduced participation and lack of strong buying interest.

🎯 Entry Zone: 940–960 ₹ (near support).

🎯 Exit Zone: 1,030–1,060 ₹ (near resistance trendline and 50 DMA).

⚡ Support Levels: 931 ₹ and 900 ₹.

⚡ Resistance Levels: 1,034 ₹ and 1,166 ₹.

Positive

• Dividend yield of 2.01% provides income return.
• ROE (15.6%) and ROCE (15.2%) show moderate efficiency.
• Debt-to-equity ratio at 0.91 is manageable.
• DII holdings increased slightly (+0.04%), reflecting marginal domestic support.

Limitation

• High P/E (66.9) compared to industry average (37.6), suggesting overvaluation.
• Quarterly PAT dropped sharply from 54.9 Cr. to 18.7 Cr. (-64.2%).
• EPS of 13.0 ₹ is modest relative to valuation.
• Stock trading near 52-week low with weak momentum indicators.

Company Negative News

• Quarterly profit decline raises concerns about earnings stability.
• MACD strongly negative, confirming bearish momentum.
• Stock corrected sharply from its 52-week high of 1,479 ₹.

Company Positive News

• Dividend yield of 2.01% adds shareholder value.
• Debt levels remain manageable despite earnings pressure.
• Oversold RSI may trigger short-term recovery bounce.

Industry

• Industry P/E at 37.6, lower than BATAINDIA’s 66.9, highlighting premium valuation.
• Footwear and retail sector outlook remains cyclical with demand tied to consumer spending trends.

Conclusion

⚖️ BATAINDIA is consolidating near support with oversold RSI and strongly negative MACD, showing short-term weakness but potential for a bounce. Traders may consider entry around 940–960 ₹ with exits near 1,030–1,060 ₹. The stock is in a corrective phase, awaiting breakout above 1,034 ₹ for trend reversal.