CASTROLIND - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical 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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