CASTROLIND - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.2

📊 Chart Patterns: The stock is trading below both its 50 DMA (192 ₹) and 200 DMA (202 ₹), showing a bearish trend. Current price (183 ₹) is closer to support levels, indicating weakness but potential for rebound.

📈 Moving Averages: Price below both 50 DMA and 200 DMA → bearish structure. Trend confirmation remains negative until price crosses 192–202 ₹.

📉 RSI: At 29.5, RSI is oversold, suggesting potential for short-term bounce from support zones.

📉 MACD: Negative (-2.89) with bearish crossover, confirming weak momentum.

📊 Bollinger Bands: Price near lower band, indicating oversold conditions and possible mean reversion.

📊 Volume Trends: Current volume (8,57,770) is slightly below 1-week average (9,03,318), showing lack of strong buying interest.

📍 Support & Resistance:

- Strong support: 163 ₹

- Immediate resistance: 192 ₹ (50 DMA)

- Major resistance: 202 ₹ (200 DMA)

🚦 Momentum Signals: Short-term momentum is weak but oversold. Entry zone: 170–180 ₹ near support. Exit zone: 190–195 ₹ if resistance is tested.

🔄 Trend Status: The stock is consolidating with bearish bias, oversold but not yet reversing.

Positive

• High ROCE (55.2%) and ROE (41.8%) indicate strong capital efficiency.
• Attractive dividend yield of 4.69% provides steady income.
• Low debt-to-equity ratio (0.04) ensures financial stability.
• Quarterly profit growth (+9.82%) despite market weakness.

Limitation

• Stock trading below both 50 DMA and 200 DMA, showing weak technical strength.
• RSI oversold but momentum remains negative, limiting upside potential.
• PEG ratio of 2.79 suggests valuation is stretched relative to growth.

Company Negative News

• FII holdings declined (-0.04%), showing reduced foreign investor confidence.
• Quarterly PAT fell slightly (228 Cr. vs 244 Cr.).

Company Positive News

• DII holdings increased (+0.03%), showing domestic institutional support.
• EPS of 9.87 ₹ remains stable, supporting dividend payouts.

Industry

• Industry PE at 15.6 is lower than stock PE (18.5), indicating slight overvaluation.
• Lubricants industry is stable but cyclical, tied to automotive and industrial demand.

Conclusion

⚖️ Castrol India is consolidating with bearish bias, trading below key moving averages. Oversold RSI suggests potential rebound, but momentum remains weak. Entry near 170–180 ₹ could be considered for short-term gains, with exit around 190–195 ₹. Long-term investors should wait for confirmation above 202 ₹ (200 DMA). Strong fundamentals and dividend yield support long-term holding despite near-term weakness.