CERA - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.5

📈 CERA is currently in a consolidating phase with mixed momentum signals and price hovering near key moving averages.

📊 Technical Overview

• Trend Status: Consolidating — price is fluctuating around 50 DMA (₹6,200) and slightly below 200 DMA (₹6,491).
• Moving Averages: Price is above 50 DMA but below 200 DMA, indicating indecision in trend direction.
• RSI (57.2): Neutral zone, suggesting balanced momentum with potential for upward movement.
• MACD (-23.8): Negative crossover indicates short-term bearish pressure.
• Bollinger Bands: Price near mid-band, consistent with consolidation and low volatility.
• Volume: Slightly above average (15,872 vs 13,330), showing mild accumulation interest.

📌 Entry & Exit Zones

• Support Zone: ₹6,000–₹6,200 — ideal for cautious entry if bullish signals strengthen.
• Resistance Zone: ₹6,500–₹6,700 — potential exit or partial profit booking zone.
• Breakout Level: ₹6,800 — crossing this could lead to retesting the 52-week high of ₹8,015.

✅ Positive

• Strong ROCE (22.4%) and ROE (18.3%) reflect efficient capital use.
• Low debt-to-equity ratio (0.05) supports financial stability.
• EPS of ₹189 and consistent dividend yield (1.03%).

⚠️ Limitation

• MACD indicates short-term bearish momentum.
• Price below 200 DMA — trend confirmation needed.
• High P/E (33.0) and PEG ratio (1.92) suggest premium valuation.

📰 Company Negative News

• Quarterly PAT dropped from ₹86.8 Cr to ₹46.5 Cr, indicating earnings pressure.
• Decline in FII holdings (-1.35%) may reflect cautious foreign sentiment.

🌟 Company Positive News

• Strong fundamentals with low debt and high return ratios.
• Positive DII holding change (+1.49%) shows domestic institutional confidence.

🏭 Industry

• Operates in sanitaryware and building materials, a sector linked to real estate and infrastructure cycles.
• Industry P/E (32.8) aligns closely with the stock’s, suggesting fair valuation.

🧾 Conclusion

• CERA is technically consolidating with mixed signals and strong long-term fundamentals.
• Entry near ₹6,000–₹6,200 is favorable; watch for breakout above ₹6,800.
• Long-term investors may hold for stability and growth; short-term traders should monitor MACD and resistance levels.