BRITANNIA - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.4

📉 BRITANNIA is currently reversing from a prior uptrend, showing signs of weakness. The stock is trading below its 50 DMA with bearish momentum indicators and neutral volume.

📊 Technical Analysis Summary

• Trend Status: Reversing
• RSI (41.0): Weak — approaching oversold zone
• MACD (-16.0): Bearish crossover — confirms downward momentum
• Volume: Slightly above 1-week average — moderate conviction
• DMA 50 & 200: Price below 50 DMA, slightly above 200 DMA — weakening trend
• Bollinger Bands: Price near lower band — oversold, potential bounce

🎯 Entry & Exit Zones

• Support Levels: ₹5,750, ₹5,615, ₹5,500
• Resistance Levels: ₹5,904, ₹6,050, ₹6,200
• Optimal Entry: ₹5,750–₹5,800 (if RSI stabilizes)
• Exit Target: ₹6,050–₹6,200 (short-term resistance)

✅ Positive

• Strong ROCE (56.8%) and ROE (58.0%) — excellent capital efficiency
• EPS of ₹88.3 — robust earnings profile
• Price above 200 DMA — long-term trend still intact
• DII holding increased by 0.74% — domestic investor confidence

⚠️ Limitation

• RSI near oversold — weak momentum
• MACD negative — bearish signal
• Price below 50 DMA — short-term trend reversal risk
• High P/E (65.8) and PEG (6.42) — valuation concerns

📉 Company Negative News

• Quarterly PAT declined from ₹557 Cr to ₹498 Cr — 4.23% drop
• FII holding declined by 0.56% — slight institutional caution

📈 Company Positive News

• Stock up 71.5% from 52-week low — strong long-term performance
• Stable earnings and strong fundamentals support long-term outlook

🏭 Industry

• Sector: FMCG / Packaged Foods
• Industry P/E: 48.0 vs BRITANNIA’s P/E: 65.8 — relatively overvalued
• Sector outlook stable with consistent consumer demand and brand strength

🧾 Conclusion

• BRITANNIA is reversing with weak short-term technical momentum
• Entry near ₹5,750–₹5,800 with targets at ₹6,050–₹6,200
• Monitor RSI and MACD for signs of stabilization or deeper correction
• Strong fundamentals support long-term view, but short-term caution advised