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CERA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | CERA | Market Cap | 6,496 Cr. | Current Price | 5,036 ₹ | High / Low | 7,275 ₹ |
| Stock P/E | 27.6 | Book Value | 1,063 ₹ | Dividend Yield | 1.30 % | ROCE | 22.4 % |
| ROE | 18.3 % | Face Value | 5.00 ₹ | DMA 50 | 5,277 ₹ | DMA 200 | 5,949 ₹ |
| Chg in FII Hold | -1.22 % | Chg in DII Hold | 0.46 % | PAT Qtr | 56.6 Cr. | PAT Prev Qtr | 46.5 Cr. |
| RSI | 44.7 | MACD | -84.5 | Volume | 8,460 | Avg Vol 1Wk | 10,863 |
| Low price | 4,794 ₹ | High price | 7,275 ₹ | PEG Ratio | 1.61 | Debt to equity | 0.04 |
| 52w Index | 9.76 % | Qtr Profit Var | -16.8 % | EPS | 182 ₹ | Industry PE | 27.6 |
📊 Technical Analysis
- Chart Patterns: CERA has corrected from its 52-week high of 7,275 ₹ and is consolidating near 5,036 ₹.
- Moving Averages: Price (5,036 ₹) is below both 50 DMA (5,277 ₹) and 200 DMA (5,949 ₹), confirming bearish momentum.
- RSI: At 44.7, neutral to weak — closer to oversold territory.
- MACD: Negative (-84.5), reinforcing bearish sentiment.
- Bollinger Bands: Price near lower band, suggesting possible support zone.
- Volume Trends: Current volume (8,460) below 1-week average (10,863), showing weak participation.
📈 Momentum & Signals
- Short-term Momentum: Weak due to negative MACD and RSI below 50.
- Support Levels: 5,000 ₹ (near-term), 4,794 ₹ (major support).
- Resistance Levels: 5,277 ₹ (50 DMA), 5,600 ₹ (intermediate resistance).
- Optimal Entry Zone: 4,950–5,050 ₹ (close to support).
- Optimal Exit Zone: 5,250–5,600 ₹ (near resistance).
- Trend Status: Consolidating with bearish bias.
✅ Positive
- Strong ROCE (22.4%) and ROE (18.3%) highlight efficient capital usage.
- Debt-to-equity ratio of 0.04 indicates very low financial risk.
- EPS of 182 ₹ supports long-term earnings visibility.
⚠️ Limitation
- PEG ratio of 1.61 indicates limited growth relative to valuation.
- Quarterly profit variation (-16.8%) shows earnings slowdown.
- Stock trading below both 50 DMA and 200 DMA, signaling weakness.
📉 Company Negative News
- FII holdings decreased (-1.22%), showing reduced foreign investor confidence.
- 52-week index at 9.76% indicates stock trading near lower end of its range.
📈 Company Positive News
- DII holdings increased (+0.46%), showing domestic institutional support.
- PAT improved sequentially (56.6 Cr vs 46.5 Cr), showing resilience despite slowdown.
🏭 Industry
- Building materials and ceramics sector supported by real estate and infrastructure demand.
- Industry PE at 27.6 vs stock PE at 27.6 — stock trades in line with industry valuation.
🔎 Conclusion
- CERA is consolidating with short-term bearish signals but strong fundamentals.
- Best entry near 4,950–5,050 ₹, exit near 5,250–5,600 ₹ unless breakout above 5,600 ₹ occurs.
- Medium-term outlook cautious due to weak momentum and earnings slowdown, though low debt and strong ROCE provide stability.