⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
BHARATFORG - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.8
| Stock Code | BHARATFORG | Market Cap | 69,029 Cr. | Current Price | 1,444 ₹ | High / Low | 1,506 ₹ |
| Stock P/E | 50.7 | Book Value | 231 ₹ | Dividend Yield | 0.62 % | ROCE | 14.6 % |
| ROE | 13.7 % | Face Value | 2.00 ₹ | DMA 50 | 1,414 ₹ | DMA 200 | 1,320 ₹ |
| Chg in FII Hold | -1.22 % | Chg in DII Hold | 1.97 % | PAT Qtr | 316 Cr. | PAT Prev Qtr | 339 Cr. |
| RSI | 40.3 | MACD | -4.58 | Volume | 9,57,642 | Avg Vol 1Wk | 10,38,556 |
| Low price | 919 ₹ | High price | 1,506 ₹ | PEG Ratio | 4.39 | Debt to equity | 0.33 |
| 52w Index | 89.3 % | Qtr Profit Var | -10.3 % | EPS | 28.0 ₹ | Industry PE | 28.0 |
📈 Technical Analysis
- Chart Patterns: Stock has corrected from highs (1,506 ₹) and is trading at 1,444 ₹, showing weakness near resistance levels.
- Moving Averages: Current price is slightly above 50 DMA (1,414 ₹) and 200 DMA (1,320 ₹), indicating medium-term bullish bias but short-term weakness.
- RSI: At 40.3, stock is weak and approaching oversold territory, suggesting limited downside but lack of strong momentum.
- MACD: Negative (-4.58), confirming bearish momentum in the short term.
- Bollinger Bands: Price near lower band, indicating oversold conditions and potential stabilization.
- Volume Trends: Current volume (9,57,642) is slightly below average weekly volume (10,38,556), showing reduced participation and cautious sentiment.
🎯 Momentum & Trade Zones
- Short-term Momentum: Weak, with bearish signals dominating but possible consolidation near support.
- Support Levels: 1,420 ₹ (near-term), 1,320 ₹ (major support at 200 DMA).
- Resistance Levels: 1,460 ₹ (short-term), 1,500–1,506 ₹ (recent high).
- Optimal Entry: 1,420–1,430 ₹ if RSI stabilizes.
- Optimal Exit: 1,480–1,500 ₹ unless breakout above 1,506 ₹ is confirmed.
📊 Trend Status
Stock is consolidating after a strong rally, with bearish short-term signals but medium-term trend still intact above 200 DMA.
✅ Positive
- Strong ROCE (14.6%) and ROE (13.7%).
- DII holding increased (+1.97%), showing domestic institutional confidence.
- Debt-to-equity ratio at 0.33, manageable leverage.
- 52-week index gain of 89.3% highlights strong long-term performance.
⚠️ Limitation
- High valuation with P/E of 50.7 vs industry P/E of 28.0.
- PEG ratio of 4.39 indicates expensive growth.
- Quarterly profit declined (-10.3%).
📉 Company Negative News
- PAT fell to 316 Cr. from 339 Cr. in previous quarter.
- FII holding reduced (-1.22%), showing foreign investor caution.
📈 Company Positive News
- DII holding increased (+1.97%), reflecting domestic investor confidence.
- EPS at 28.0 ₹ supports earnings visibility despite short-term weakness.
🏭 Industry
- Auto and engineering sector trading at industry P/E of 28.0, lower than Bharat Forge’s valuation.
- Sector supported by infrastructure growth and defense manufacturing initiatives.
🔎 Conclusion
Bharat Forge is technically consolidating with weak short-term momentum but medium-term support intact above 200 DMA. Traders may consider cautious entry near 1,420–1,430 ₹ with exit around 1,480–1,500 ₹. Long-term investors should wait for breakout above 1,506 ₹ for fresh bullish confirmation.