BERGEPAINT - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.6

📊 Chart Patterns & Trend: BERGEPAINT is in a corrective phase after falling from its 52-week high of 605 ₹. The current price (535 ₹) is below both 50 DMA (551 ₹) and 200 DMA (544 ₹), reflecting short-term weakness and medium-term consolidation. The stock is trending sideways with bearish undertones.

📈 Moving Averages:

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

- Sustained move above 551–560 ₹ is required to regain strength.

- Strong resistance remains at 605 ₹ (recent high).

📉 RSI: At 37.9, RSI is weak and close to oversold territory, suggesting limited buying strength but potential for a bounce.

📉 MACD: Negative (-5.50), confirming bearish crossover and short-term weakness.

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

📊 Volume Trends: Current volume (91,946) is below the 1-week average (1,21,939), showing reduced participation and lack of strong buying interest.

🎯 Entry Zone: 525–535 ₹ (near support).

🎯 Exit Zone: 560–580 ₹ (near resistance trendline and DMA levels).

⚡ Support Levels: 525 ₹ and 438 ₹.

⚡ Resistance Levels: 551 ₹, 544 ₹, and 605 ₹.

Positive

• Strong ROCE (24.9%) and ROE (20.0%) highlight efficient capital use.
• Dividend yield of 0.72% provides income return.
• EPS of 8.69 ₹ supports earnings visibility.
• DII holdings increased (+0.26%), reflecting domestic investor confidence.

Limitation

• High P/E (60.0) compared to industry average (38.7), suggesting overvaluation.
• PEG ratio (4.64) indicates expensive valuation relative to growth.
• Quarterly PAT declined from 321 Cr. to 176 Cr. (-23%).
• Stock trading below both 50 DMA and 200 DMA reflects bearish trend.

Company Negative News

• Quarterly profit decline raises concerns about earnings stability.
• MACD negative, confirming weak momentum.
• FII holdings decreased (-0.24%), showing reduced foreign investor interest.

Company Positive News

• Strong ROCE and ROE provide long-term valuation support.
• DII inflows (+0.26%) reflect confidence in fundamentals.
• Dividend yield adds shareholder value.

Industry

• Industry P/E at 38.7, lower than BERGEPAINT’s 60.0, highlighting premium valuation.
• Paints and coatings sector outlook remains strong with demand driven by housing and infrastructure growth.

Conclusion

⚖️ BERGEPAINT is consolidating with weak RSI and negative MACD, showing short-term weakness but potential for a bounce. Traders may consider entry around 525–535 ₹ with exits near 560–580 ₹. The stock is in a corrective phase, awaiting breakout above 551–605 ₹ for trend reversal.