CHALET - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.7

📊 Chart Patterns: CHALET is trading below its 50 DMA (909 ₹) and 200 DMA (904 ₹), showing short-term weakness. Current price (873 ₹) is near support levels, indicating consolidation after a decline from recent highs (1,082 ₹).

📈 Moving Averages: Price < 50 DMA and < 200 DMA → bearish alignment. Trend remains weak until price crosses 904–909 ₹.

📉 RSI: At 37.2, RSI is oversold, suggesting potential for short-term rebound.

📉 MACD: Negative (-10.8), confirming bearish crossover and weak momentum.

📊 Bollinger Bands: Price near lower band, suggesting oversold conditions and possible mean reversion.

📊 Volume Trends: Current volume (1,83,393) is higher than 1-week average (1,20,738), showing increased activity, likely on the downside.

📍 Support & Resistance:

- Strong support: 850 ₹

- Major support: 634 ₹ (52-week low)

- Immediate resistance: 904–909 ₹ (DMA levels)

- Major resistance: 1,082 ₹ (52-week high)

🚦 Momentum Signals: Short-term momentum is weak but oversold. Entry zone: 850–870 ₹ near support. Exit zone: 900–920 ₹ if resistance is tested. Breakout above 909 ₹ would confirm reversal attempt.

🔄 Trend Status: The stock is consolidating with bearish bias, oversold but not yet reversing.

Positive

• PEG ratio of 0.51 suggests undervaluation relative to growth prospects.
• Quarterly PAT growth (+228%) indicates strong earnings momentum.
• EPS of 27.8 ₹ supports valuation comfort.
• FII holdings increased (+0.44%), showing foreign investor confidence.

Limitation

• Stock trading below both 50 DMA and 200 DMA, showing weak technical strength.
• RSI and MACD both indicate bearish momentum.
• Dividend yield of 0.12% is very low, limiting income support.
• ROE (6.88%) and ROCE (11.9%) are relatively weak compared to peers.

Company Negative News

• DII holdings declined (-0.52%), showing reduced domestic institutional support.
• Quarterly PAT fell to 168 Cr. from 205 Cr., reflecting earnings pressure.

Company Positive News

• FII holdings increased (+0.44%), reflecting foreign institutional confidence.
• EPS of 27.8 ₹ remains strong despite recent profit decline.

Industry

• Industry PE at 34.1 is slightly higher than CHALET’s PE (31.5), showing relative valuation comfort.
• Hospitality industry benefits from tourism and corporate travel demand, though cyclical in nature.

Conclusion

⚖️ CHALET is consolidating with bearish bias, trading below key moving averages but oversold on RSI. Entry near 850–870 ₹ could be considered for short-term gains, with exit around 900–920 ₹. A breakout above 909 ₹ (DMA levels) would confirm reversal. Fundamentals show strong growth potential, but near-term weakness due to declining profits and weak ROE persists.