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CASTROLIND - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.8

Last Updated Time : 28 May 26, 07:19 pm

Technical Rating: 3.8

Stock Code CASTROLIND Market Cap 18,325 Cr. Current Price 185 ₹ High / Low 232 ₹
Stock P/E 18.8 Book Value 19.2 ₹ Dividend Yield 4.72 % ROCE 60.3 %
ROE 45.9 % Face Value 5.00 ₹ DMA 50 183 ₹ DMA 200 190 ₹
Chg in FII Hold -1.20 % Chg in DII Hold -0.38 % PAT Qtr 242 Cr. PAT Prev Qtr 261 Cr.
RSI 60.8 MACD 0.23 Volume 12,62,071 Avg Vol 1Wk 8,14,521
Low price 170 ₹ High price 232 ₹ PEG Ratio 3.27 Debt to equity 0.03
52w Index 24.3 % Qtr Profit Var 3.74 % EPS 9.69 ₹ Industry PE 12.5

📊 Chart Patterns & Trend: CASTROLIND is consolidating after a decline from its 232 ₹ high. Current price (185 ₹) is slightly above the 50 DMA (183 ₹) but below the 200 DMA (190 ₹), showing short-term strength but long-term caution. Resistance lies near 195–200 ₹, with support at 175–180 ₹. Trendlines suggest sideways consolidation with mild bullish undertone.

📈 Moving Averages: Price is above the 50 DMA but below the 200 DMA, indicating mixed momentum.

📉 RSI: At 60.8, RSI is moderately bullish, suggesting momentum but nearing overbought territory.

📈 MACD: Positive (0.23), signaling mild bullish momentum.

📊 Bollinger Bands: Price is near the mid-to-upper band, suggesting consolidation with potential breakout if volume sustains.

📊 Volume Trends: Current volume (12,62,071) is above the 1-week average (8,14,521), showing strong participation and potential for momentum continuation.

💡 Momentum Signals: Neutral to mildly bullish bias. A breakout above 195–200 ₹ could trigger upside toward 210–215 ₹, while support lies near 175–180 ₹.

🎯 Entry Zone: 175–180 ₹ (support region).

🎯 Exit Zone: 195–200 ₹ (resistance region; extended target 210–215 ₹).

📌 Status: Consolidating with mild bullish momentum.

Positive

✔ Strong ROCE (60.3%) and ROE (45.9%).

✔ Debt-to-equity ratio of 0.03, effectively debt-free.

✔ Dividend yield of 4.72% provides income support.

✔ EPS of 9.69 ₹ supports valuation strength.

Limitation

⚠ P/E (18.8) higher than industry PE (12.5), suggesting premium valuation.

⚠ PEG ratio of 3.27 indicates growth is priced in.

⚠ Quarterly PAT declined (242 Cr. vs 261 Cr.).

⚠ Institutional holdings decreased (FII -1.20%, DII -0.38%).

Company Negative News

⚠ Decline in institutional holdings shows reduced investor confidence.

⚠ Quarterly profit variation (+3.74%) indicates inconsistency.

Company Positive News

✔ Dividend yield continues to attract income-focused investors.

✔ Strong efficiency metrics (ROCE, ROE) highlight operational strength.

Industry

🏭 Lubricants and automotive sector faces cyclical demand but remains essential for industrial and consumer markets.

📉 Industry PE (12.5) lower than CASTROLIND’s PE (18.8), showing premium valuation.

Conclusion

📌 CASTROLIND is consolidating near support with mild bullish momentum. Entry around 175–180 ₹ offers favorable risk-reward, while exits near 195–200 ₹ are prudent unless momentum drives a breakout toward 210–215 ₹. Long-term investors may benefit from dividend yield, but traders should monitor institutional sentiment and valuation levels.

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