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CHALET - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.5

Last Updated Time : 19 Mar 26, 08:56 pm

Technical Rating: 3.5

Stock Code CHALET Market Cap 16,300 Cr. Current Price 745 ₹ High / Low 1,082 ₹
Stock P/E 25.8 Book Value 158 ₹ Dividend Yield 0.13 % ROCE 11.9 %
ROE 6.88 % Face Value 10.0 ₹ DMA 50 821 ₹ DMA 200 872 ₹
Chg in FII Hold -0.65 % Chg in DII Hold 0.59 % PAT Qtr 127 Cr. PAT Prev Qtr 168 Cr.
RSI 39.8 MACD -31.9 Volume 2,70,854 Avg Vol 1Wk 1,40,264
Low price 702 ₹ High price 1,082 ₹ PEG Ratio 0.42 Debt to equity 0.64
52w Index 11.3 % Qtr Profit Var 24.9 % EPS 28.9 ₹ Industry PE 28.4

📈 Chart & Trend: CHALET is trading at ₹745, below both its 50 DMA (₹821) and 200 DMA (₹872). This indicates short-term and medium-term weakness, with the stock consolidating near support levels.

📊 Momentum Indicators:

- RSI at 39.8 suggests oversold conditions, potential for rebound.

- MACD at -31.9 shows bearish crossover, confirming short-term weakness.

- Bollinger Bands: Price near lower band, indicating possible mean reversion.

- Volume: Current volume (2.7 lakh) is significantly higher than 1-week average (1.4 lakh), showing strong participation.

🔑 Support & Resistance:

- Support zone: ₹730–₹740

- Resistance zone: ₹820–₹830 (near 50 DMA)

- Breakout resistance: ₹870–₹880 (near 200 DMA)

- Long-term support: ₹702

📌 Entry & Exit Zones:

- Entry: ₹730–₹745 (near support)

- Exit: ₹820–₹870 (resistance zone)

- Stop-loss: ₹715

📉 Trend Status: Consolidating with bearish bias. Needs a breakout above ₹820–₹830 to confirm reversal and trend continuation.


Positive

  • EPS of ₹28.9 with PEG ratio of 0.42 indicates undervaluation relative to growth.
  • Quarterly PAT growth (₹127 Cr vs ₹168 Cr) still reflects profitability despite decline.
  • DII holdings increased by 0.59%, showing domestic investor confidence.
  • ROCE at 11.9% reflects moderate operational efficiency.

Limitation

  • ROE at 6.88% is modest compared to industry leaders.
  • Stock trading below both 50 DMA and 200 DMA indicates weakness.
  • Quarterly PAT declined, showing earnings pressure.
  • FII holdings decreased by 0.65%, showing reduced foreign confidence.

Company Negative News

  • No major recent negative news reported, but earnings decline and reduced FII holdings are concerns.

Company Positive News

  • Strong domestic institutional inflows support confidence.
  • PEG ratio below 1 highlights attractive valuation relative to growth.

Industry

  • Industry PE at 28.4 vs stock PE at 25.8 shows CHALET trades at a slight discount.
  • Hospitality sector supported by tourism recovery, though cyclical risks remain.

Conclusion

⚡ CHALET is consolidating with bearish bias, trading below key moving averages. Entry near ₹730–₹745 offers margin of safety, with exit targets around ₹820–₹870. Strong valuation metrics and domestic inflows support medium-term prospects, but modest ROE and declining foreign investor confidence remain key risks.

Would you like me to extend this into a peer benchmarking overlay comparing CHALET with other hospitality players (like Indian Hotels, Lemon Tree Hotels, and EIH) to highlight relative strength, valuation gaps, and sector rotation opportunities?

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