BRITANNIA - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.2

📈 Technical Analysis

• Chart Patterns: Stock is trading close to its 52-week high (6,337 ₹), showing strong bullish momentum.
• Moving Averages: Current price (6,103 ₹) is above both 50 DMA (5,910 ₹) and 200 DMA (5,696 ₹), confirming an uptrend.
• RSI: At 58.5, RSI is moderately strong, suggesting healthy momentum without being overbought.
• MACD: Positive at 36.7, showing bullish crossover and strong upward momentum.
• Bollinger Bands: Price is near the upper band, signaling possible resistance and short-term consolidation.
• Volume Trends: Current volume (2,02,854) is below 1-week average (2,63,339), indicating reduced participation near highs.

🎯 Momentum & Trade Zones

• Support Levels: 5,910 ₹ (50 DMA), 5,696 ₹ (200 DMA), and strong base at 5,500 ₹.
• Resistance Levels: 6,337 ₹ (52-week high). Breakout above this may lead to 6,450–6,500 ₹ zone.
• Entry Zone: 5,950–6,050 ₹ (near support, favorable risk-reward).
• Exit Zone: 6,300–6,450 ₹ (near resistance/top band).
• Trend Status: Trending upward with strong bullish signals but mild consolidation risk near highs.

✅ Positive

• Price trading above both 50 DMA and 200 DMA.
• Strong ROCE (56.8%) and ROE (58.0%) indicate excellent capital efficiency.
• Quarterly PAT improved significantly (690 Cr. vs 498 Cr.), showing earnings growth.
• EPS of 95.6 ₹ supports long-term earnings visibility.
• DII holdings increased (+0.74%), showing domestic institutional confidence.

⚠️ Limitation

• High P/E ratio (63.9) compared to industry average (48.7), suggesting premium valuation.
• PEG ratio of 6.23 indicates expensive valuation relative to growth.
• Volume participation is weakening near resistance levels.
• Debt-to-equity ratio of 0.66 is moderately high.

📉 Company Negative News

• FII holdings decreased (-0.56%), showing reduced foreign investor confidence.
• Stock trading close to resistance, limiting immediate upside potential.

📊 Company Positive News

• Quarterly PAT growth of 34.1% shows strong operational performance.
• EPS of 95.6 ₹ highlights profitability and earnings strength.
• DII stake increased, boosting investor sentiment.

🏭 Industry

• Industry P/E at 48.7, lower than Britannia’s valuation, suggesting premium pricing.
• FMCG sector remains resilient, supported by strong demand and brand leadership.

📝 Conclusion

• Britannia is in a bullish trend, supported by strong fundamentals and technicals.
• Valuations are stretched, and volume weakness suggests caution near resistance.
• Optimal strategy: Buy near support (5,950–6,050 ₹) and book profits near resistance (6,300–6,450 ₹).
• Short-term outlook: Consolidation near highs; long-term outlook remains positive with strong earnings growth and sector resilience.