CARBORUNIV - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.6

📉 The stock is showing signs of a short-term downtrend with weak momentum indicators and declining volume.

📊 Technical Overview

• Trend Status: Reversing — the stock has pulled back significantly from its 52-week high of ₹1,531.
• Moving Averages: Price is below both 50 DMA (₹929) and 200 DMA (₹1,017), confirming bearish sentiment.
• RSI (43.6): Indicates weak momentum, nearing oversold territory but not yet a reversal signal.
• MACD (-6.86): Negative crossover supports bearish momentum.
• Bollinger Bands: Price approaching lower band, suggesting potential support but also increased volatility.
• Volume: Slightly below average (1,10,580 vs 1,12,762), showing lack of strong buying interest.

📌 Entry & Exit Zones

• Support Zone: ₹809–₹850 — potential entry zone if reversal signals emerge.
• Resistance Zone: ₹950–₹1,000 — ideal for exit or partial profit booking.
• Breakout Level: ₹1,017 — crossing 200 DMA could signal trend reversal.

✅ Positive

• Zero debt with a strong balance sheet.
• Healthy ROCE (17.6%) and ROE (13.3%).
• Dividend-paying stock with consistent profitability.

⚠️ Limitation

• High P/E (49.4) and PEG ratio (6.00) suggest overvaluation.
• Quarterly profit dropped significantly (₹145 Cr to ₹64.3 Cr).
• Price trading below key moving averages.

📰 Company Negative News

• Quarterly profit fell by 25.6%, indicating operational pressure.
• Decline in FII holdings (-0.94%) shows reduced foreign investor confidence.

🌟 Company Positive News

• Strong fundamentals with zero debt and stable cash flows.
• Positive DII holding change (+0.60%) reflects domestic institutional support.

🏭 Industry

• Operates in industrial specialties, a cyclical sector sensitive to macroeconomic trends.
• Industry P/E (51.9) slightly above stock’s P/E, indicating sector-wide premium valuations.

🧾 Conclusion

• Technically weak in the short term with bearish indicators.
• Wait for confirmation of reversal near ₹809–₹850 before entry.
• Long-term investors may hold due to strong fundamentals, but short-term traders should remain cautious.