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CHALET - Technical Analysis with Chart Patterns & Indicators

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Rating: 4.1

Last Updated Time : 28 May 26, 07:19 pm

Technical Rating: 4.1

Stock Code CHALET Market Cap 17,547 Cr. Current Price 801 ₹ High / Low 1,082 ₹
Stock P/E 26.3 Book Value 171 ₹ Dividend Yield 0.13 % ROCE 17.8 %
ROE 19.5 % Face Value 10.0 ₹ DMA 50 784 ₹ DMA 200 835 ₹
Chg in FII Hold -0.37 % Chg in DII Hold 0.58 % PAT Qtr 167 Cr. PAT Prev Qtr 127 Cr.
RSI 56.8 MACD 6.85 Volume 1,68,452 Avg Vol 1Wk 1,79,720
Low price 690 ₹ High price 1,082 ₹ PEG Ratio 0.44 Debt to equity 0.56
52w Index 28.3 % Qtr Profit Var 25.0 % EPS 30.4 ₹ Industry PE 28.4

📊 Chart Patterns & Trend: CHALET is trending upward after a recovery from its 690 ₹ low. Current price (801 ₹) is above the 50 DMA (784 ₹) but below the 200 DMA (835 ₹), showing short-term strength but medium-term caution. Support lies near 780–790 ₹, with resistance at 820–850 ₹. Trendlines suggest bullish continuation if momentum sustains.

📈 Moving Averages: Price above 50 DMA indicates short-term bullishness, but trading below 200 DMA signals medium-term resistance.

📉 RSI: At 56.8, RSI is moderately bullish, leaving room for further upside before overbought conditions.

📈 MACD: Positive (6.85), confirming bullish momentum.

📊 Bollinger Bands: Price is near the mid-to-upper band, suggesting consolidation with potential breakout.

📊 Volume Trends: Current volume (1,68,452) is slightly below the 1-week average (1,79,720), showing moderate participation.

💡 Momentum Signals: Bullish bias. A breakout above 820–850 ₹ could trigger upside toward 1,000–1,082 ₹, while support lies near 780–790 ₹.

🎯 Entry Zone: 780–790 ₹ (support region).

🎯 Exit Zone: 820–850 ₹ (resistance region; extended target 1,000–1,082 ₹).

📌 Status: Trending upward with bullish bias.

Positive

✔ EPS of 30.4 ₹ supports valuation strength.

✔ Strong ROE (19.5%) and ROCE (17.8%).

✔ PAT growth (167 Cr. vs 127 Cr.) shows earnings momentum.

✔ PEG ratio of 0.44 indicates undervaluation relative to growth.

✔ DII holdings increased (+0.58%), signaling domestic institutional support.

Limitation

⚠ Price still below 200 DMA (835 ₹), showing medium-term resistance.

⚠ FII holdings decreased (-0.37%), reflecting reduced foreign investor confidence.

⚠ Dividend yield is very low (0.13%).

⚠ Debt-to-equity ratio of 0.56 adds moderate leverage risk.

Company Negative News

⚠ FII holdings declined, showing weaker foreign sentiment.

⚠ Dividend yield remains unattractive for income-focused investors.

Company Positive News

✔ Quarterly PAT growth of 25% highlights strong profitability.

✔ DII holdings increased, showing domestic confidence.

✔ Stock trading above 50 DMA, offering short-term support.

Industry

🏨 Hospitality sector benefits from rising tourism and business travel demand in India.

📈 Industry PE (28.4) slightly higher than CHALET’s PE (26.3), suggesting fair valuation.

Conclusion

📌 CHALET is trending upward with bullish technicals. Entry near 780–790 ₹ offers favorable risk-reward, while exits near 820–850 ₹ are prudent unless momentum drives a breakout toward 1,000–1,082 ₹. Long-term investors may hold, while traders should monitor 200 DMA resistance and institutional flows for sustained momentum.

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