CASTROLIND - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.1

📉 CASTROLIND is currently in a reversing phase with weak momentum indicators and price trading below key moving averages.

📊 Technical Overview

• Trend Status: Reversing — the stock has declined from its 52-week high of ₹252 and is now below both 50 DMA and 200 DMA.
• Moving Averages: Current price (₹196) is below 50 DMA (₹202) and 200 DMA (₹207), indicating bearish sentiment.
• RSI (36.8): Approaching oversold territory, suggesting weak momentum but potential for a bounce.
• MACD (-1.36): Negative crossover confirms bearish momentum.
• Bollinger Bands: Price nearing lower band, indicating possible support and increased volatility.
• Volume: Slightly above average (12.67L vs 12.28L), showing mild accumulation interest.

📌 Entry & Exit Zones

• Support Zone: ₹163–₹180 — potential entry zone if reversal signals strengthen.
• Resistance Zone: ₹202–₹207 — ideal for exit or partial profit booking.
• Breakout Level: ₹207 — crossing 200 DMA could signal trend reversal.

✅ Positive

• Strong ROCE (55.2%) and ROE (41.8%) indicate efficient capital use.
• High dividend yield (4.35%) supports income-focused investors.
• Low debt-to-equity ratio (0.04) reflects financial stability.

⚠️ Limitation

• Price trading below key moving averages.
• High PEG ratio (3.06) suggests limited growth at current valuation.
• Stock P/E (20.3) is above industry average (16.9), indicating premium pricing.

📰 Company Negative News

• Minor decline in FII holdings (-0.04%) may reflect cautious foreign sentiment.

🌟 Company Positive News

• Quarterly profit increased by 5.10%, showing operational resilience.
• Positive DII holding change (+0.03%) indicates domestic institutional confidence.

🏭 Industry

• Operates in oil marketing and distribution, a sector sensitive to crude price fluctuations and regulatory changes.
• Industry P/E (16.9) is lower than the stock’s, suggesting CASTROLIND trades at a premium.

🧾 Conclusion

• Technically weak in the short term with bearish indicators.
• Wait for confirmation of reversal near ₹163–₹180 before entry.
• Long-term investors may hold due to strong fundamentals and dividend yield, but short-term traders should be cautious.

Sources: TradingView Technicals, Trendlyne Stock Analysis, TopStockResearch