CERA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | CERA | Market Cap | 7,414 Cr. | Current Price | 5,755 ₹ | High / Low | 7,275 ₹ |
| Stock P/E | 35.3 | Book Value | 1,142 ₹ | Dividend Yield | 1.30 % | ROCE | 19.3 % |
| ROE | 14.9 % | Face Value | 5.00 ₹ | DMA 50 | 5,396 ₹ | DMA 200 | 5,553 ₹ |
| Chg in FII Hold | -0.41 % | Chg in DII Hold | 0.17 % | PAT Qtr | 69.4 Cr. | PAT Prev Qtr | 35.0 Cr. |
| RSI | 60.2 | MACD | 142 | Volume | 5,274 | Avg Vol 1Wk | 7,642 |
| Low price | 4,461 ₹ | High price | 7,275 ₹ | PEG Ratio | -90.5 | Debt to equity | 0.03 |
| 52w Index | 46.0 % | Qtr Profit Var | -20.0 % | EPS | 158 ₹ | Industry PE | 731 |
📊 Chart Patterns & Trend: CERA is consolidating after a decline from its 7,275 ₹ high. Current price (5,755 ₹) is trading above both 50 DMA (5,396 ₹) and 200 DMA (5,553 ₹), showing short-term strength. Support lies near 5,500–5,600 ₹, with resistance at 6,000–6,200 ₹. Trendlines suggest sideways consolidation with bullish undertone.
📈 Moving Averages: Price is above both 50 DMA and 200 DMA, confirming bullish alignment.
📉 RSI: At 60.2, RSI is moderately bullish, approaching overbought territory.
📈 MACD: Strongly positive (142), confirming bullish momentum.
📊 Bollinger Bands: Price is near the upper band, suggesting strong buying pressure but potential short-term pullback.
📊 Volume Trends: Current volume (5,274) is below the 1-week average (7,642), showing weaker participation despite bullish price action.
💡 Momentum Signals: Bullish bias with consolidation. A breakout above 6,000 ₹ could trigger upside toward 6,500–7,000 ₹, while breakdown below 5,500 ₹ risks correction.
🎯 Entry Zone: 5,500–5,600 ₹ (support region).
🎯 Exit Zone: 6,000–6,200 ₹ (resistance region; extended target 7,000 ₹).
📌 Status: Consolidating with bullish bias.
Positive
✔ EPS of 158 ₹ supports valuation strength.
✔ Strong ROCE (19.3%) and ROE (14.9%).
✔ Debt-to-equity ratio of 0.03, effectively debt-free.
✔ PAT growth (69.4 Cr. vs 35.0 Cr.) shows earnings momentum.
Limitation
⚠ High P/E (35.3) compared to industry PE (731), suggesting valuation premium.
⚠ RSI near overbought zone (60.2).
⚠ Volume below average, limiting breakout strength.
⚠ PEG ratio (-90.5) indicates poor growth prospects relative to valuation.
Company Negative News
⚠ FII holdings decreased (-0.41%), showing reduced foreign investor confidence.
⚠ Quarterly profit variation (-20.0%) highlights earnings weakness.
Company Positive News
✔ DII holdings increased (+0.17%), signaling domestic institutional support.
✔ PAT doubled compared to previous quarter, showing strong profitability momentum.
✔ Dividend yield of 1.30% adds investor appeal.
Industry
🏭 Building materials and sanitaryware sector benefits from housing demand and infrastructure growth.
📈 Industry PE (731) is significantly higher, suggesting sector-wide valuation premium.
Conclusion
📌 CERA is consolidating above key moving averages with bullish momentum. Entry near 5,500–5,600 ₹ offers favorable risk-reward, while exits near 6,000–6,200 ₹ are prudent unless momentum drives a breakout toward 7,000 ₹. Long-term investors may hold, while traders should monitor RSI and volume for breakout confirmation.
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