CARBORUNIV - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.6

📊 Chart Patterns: The stock is trading below both its 50 DMA (884 ₹) and 200 DMA (975 ₹), indicating a bearish undertone. Current price (854 ₹) is closer to support levels than resistance, suggesting caution.

📈 Moving Averages: 50 DMA < 200 DMA → bearish crossover. Price below both averages confirms weak momentum.

📉 RSI: At 43.6, RSI is in the neutral-to-oversold zone, showing limited buying strength but potential for rebound near support.

📉 MACD: Negative (-7.15) with bearish crossover, reinforcing weak short-term momentum.

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

📊 Volume Trends: Current volume (45,909) slightly above 1-week average (42,444), indicating mild accumulation but not strong breakout activity.

📍 Support & Resistance:

- Strong support: 809 ₹

- Immediate resistance: 884 ₹ (50 DMA)

- Major resistance: 975 ₹ (200 DMA)

🚦 Momentum Signals: Short-term momentum is weak; potential rebound from support zone (809–820 ₹). Optimal entry near 820–840 ₹ with exit around 880–900 ₹ if resistance is tested.

🔄 Trend Status: The stock is consolidating with bearish bias, not yet reversing but struggling to regain upward momentum.

Positive

• Debt-free company (Debt-to-equity: 0.00).
• Strong ROCE (17.6%) and ROE (13.3%).
• Dividend yield of 0.47% provides minor income support.
• Industry PE (49.9) slightly higher than stock PE (46.3), showing relative valuation comfort.

Limitation

• High PEG ratio (5.62) indicates expensive valuation relative to growth.
• Stock trading below both 50 DMA and 200 DMA, showing weak technical strength.
• Quarterly profit dropped significantly (-25.6% variation).

Company Negative News

• Sharp decline in quarterly PAT (64.3 Cr. vs 145 Cr.).
• FII holding reduced (-0.94%), showing reduced foreign investor confidence.

Company Positive News

• DII holdings increased (+0.60%), showing domestic institutional support.
• Stable EPS (18.4 ₹) despite profit decline.

Industry

• Industry PE at 49.9 indicates sector is trading at premium valuations.
• Carborundum Universal is part of abrasives and ceramics industry, which has steady demand but cyclical earnings.

Conclusion

⚖️ The stock is consolidating with bearish bias, trading below key moving averages. Entry near 820–840 ₹ could be considered for short-term rebound, with exit around 880–900 ₹. Long-term investors should wait for confirmation of reversal above 975 ₹ (200 DMA). Current fundamentals are stable but growth concerns persist due to declining profits.