CHAMBLFERT - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.8

📉 CHAMBLFERT is currently in a reversing phase with bearish momentum and price action below key moving averages.

📊 Technical Overview

• Trend Status: Reversing — price has declined from its 52-week high of ₹742 and is trading below both 50 DMA and 200 DMA.
• Moving Averages: Current price (₹488) is below 50 DMA (₹515) and 200 DMA (₹537), confirming bearish sentiment.
• RSI (35.3): Near oversold territory, indicating weak momentum and possible short-term bounce.
• MACD (-10.7): Negative crossover supports continued bearish pressure.
• Bollinger Bands: Price near lower band, suggesting volatility and possible support zone.
• Volume: Above average (11.62L vs 9.74L), indicating active trading but likely driven by selling pressure.

📌 Entry & Exit Zones

• Support Zone: ₹452–₹470 — potential entry zone if reversal signals emerge.
• Resistance Zone: ₹515–₹537 — ideal for exit or partial profit booking.
• Breakout Level: ₹550 — crossing this could signal trend recovery.

✅ Positive

• Strong ROCE (27.6%) and ROE (20.3%) reflect efficient capital use.
• Zero debt and healthy dividend yield (2.05%).
• Quarterly PAT surged from ₹99.7 Cr to ₹638 Cr, showing strong operational performance.
• Increase in FII holdings (+1.23%) shows foreign investor confidence.

⚠️ Limitation

• Price trading below key moving averages with bearish momentum indicators.
• High PEG ratio (1.49) suggests valuation may not be fully supported by growth.
• Low 52-week index (12.4%) indicates underperformance relative to broader market.

📰 Company Negative News

• Decline in DII holdings (-2.56%) may reflect cautious domestic sentiment.

🌟 Company Positive News

• Strong quarterly profit growth (15.5%) and EPS of ₹43.5.
• Improved foreign institutional interest and zero debt position.

🏭 Industry

• Operates in fertilizers and agrochemicals, a sector influenced by seasonal demand and government policies.
• Industry P/E (22.7) is higher than the stock’s (11.2), suggesting potential undervaluation.

🧾 Conclusion

• CHAMBLFERT is technically weak in the short term with bearish indicators and declining price action.
• Entry near ₹452–₹470 only if reversal signs strengthen; watch for breakout above ₹550.
• Long-term investors may hold for fundamentals and dividend; short-term traders should remain cautious.