CERA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | CERA | Market Cap | 6,137 Cr. | Current Price | 4,754 ₹ | High / Low | 7,275 ₹ |
| Stock P/E | 27.3 | Book Value | 1,063 ₹ | Dividend Yield | 1.37 % | ROCE | 22.4 % |
| ROE | 18.3 % | Face Value | 5.00 ₹ | DMA 50 | 4,970 ₹ | DMA 200 | 5,652 ₹ |
| Chg in FII Hold | -1.22 % | Chg in DII Hold | 0.46 % | PAT Qtr | 35.0 Cr. | PAT Prev Qtr | 56.6 Cr. |
| RSI | 46.3 | MACD | -88.6 | Volume | 13,993 | Avg Vol 1Wk | 34,083 |
| Low price | 4,461 ₹ | High price | 7,275 ₹ | PEG Ratio | 1.59 | Debt to equity | 0.04 |
| 52w Index | 10.4 % | Qtr Profit Var | -23.7 % | EPS | 165 ₹ | Industry PE | 56.3 |
📊 Chart & Trend Analysis:
CERA is trading at ₹4,754, below both its 50 DMA (₹4,970) and 200 DMA (₹5,652), indicating short-term weakness. RSI at 46.3 suggests neutral momentum, neither oversold nor overbought. MACD at -88.6 confirms bearish bias. Bollinger Bands show price leaning towards the lower band, with support around ₹4,460–₹4,500. Current volume (13,993) is significantly below the 1-week average (34,083), reflecting weak participation.
📈 Momentum Signals:
- Short-term momentum is bearish with neutral RSI.
- Support zones: ₹4,460–₹4,500 (near 52-week low and lower Bollinger Band).
- Resistance zones: ₹4,970–₹5,000 (50 DMA) and ₹5,600–₹5,650 (200 DMA).
- Optimal entry: ₹4,460–₹4,500 if support holds.
- Optimal exit: ₹4,970–₹5,000 for short-term trades, ₹5,600+ for swing trades.
🔎 Trend Status:
The stock is consolidating with bearish bias. A reversal may occur if RSI strengthens above 50 and price sustains above 50 DMA.
Positive
- Strong ROCE at 22.4% and ROE at 18.3%, indicating efficient capital usage.
- Debt-to-equity ratio of 0.04 shows near debt-free status.
- EPS of ₹165 with consistent profitability.
- DII holdings increased (+0.46%), showing domestic institutional support.
Limitation
- Stock trading below both 50 DMA and 200 DMA, reflecting technical weakness.
- Quarterly PAT declined (₹35 Cr vs ₹56.6 Cr), showing earnings pressure.
- FII holdings decreased (-1.22%), reflecting reduced foreign investor confidence.
- Dividend yield of 1.37% is modest compared to peers.
Company Negative News
- No major external negative news, but profit decline and reduced FII interest raise concerns.
Company Positive News
- Debt-free status enhances financial stability.
- DII buying provides confidence in long-term outlook.
Industry
- Industry PE at 56.3 vs stock PE at 27.3 suggests CERA trades at a discount to peers.
- Building materials and ceramics sector remains resilient with housing and infrastructure demand.
Conclusion
⚖️ CERA is technically consolidating with bearish bias but remains fundamentally strong with debt-free status and high returns on capital. Traders may consider entry near ₹4,460–₹4,500 with exits around ₹4,970–₹5,000. Long-term investors can accumulate gradually, keeping an eye on earnings growth and institutional activity.