CHENNPETRO - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.9

📊 Chart Patterns: CHENNPETRO is trading slightly below its 50 DMA (904 ₹) but above its 200 DMA (779 ₹), showing medium-term bullish strength with short-term weakness. Current price (887 ₹) is consolidating near support after a strong rally from lows (433 ₹).

📈 Moving Averages: Price > 200 DMA but < 50 DMA → medium-term bullish structure, short-term bearish bias. Sustaining above 904 ₹ would confirm strength.

📉 RSI: At 41.5, RSI is neutral-to-oversold, suggesting limited buying strength but potential rebound.

📉 MACD: Negative (-7.57), confirming bearish crossover and weak short-term momentum.

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

📊 Volume Trends: Current volume (6,41,348) is close to 1-week average (6,48,104), showing steady participation but no breakout signals.

📍 Support & Resistance:

- Strong support: 860–870 ₹

- Major support: 779 ₹ (200 DMA)

- Immediate resistance: 904 ₹ (50 DMA)

- Major resistance: 1,000–1,030 ₹

🚦 Momentum Signals: Short-term momentum is weak but oversold. Entry zone: 860–880 ₹ near support. Exit zone: 900–930 ₹ if resistance is tested. Breakout above 1,000 ₹ would confirm continuation of uptrend.

🔄 Trend Status: The stock is consolidating with bullish bias, showing medium-term strength but short-term weakness.

Positive

• Low P/E (11.6) compared to industry PE (11.3), showing fair valuation.
• EPS of 76.2 ₹ supports valuation comfort.
• Quarterly PAT surged to 732 Cr. from -56.6 Cr., reflecting strong turnaround.
• FII (+0.02%) and DII (+0.12%) holdings increased, showing institutional support.

Limitation

• Stock trading below 50 DMA, showing short-term weakness.
• ROCE (4.04%) and ROE (2.10%) are weak compared to peers.
• PEG ratio (-0.24) suggests poor valuation relative to growth prospects.

Company Negative News

• Weak return ratios (ROCE and ROE) highlight efficiency concerns.
• MACD bearish crossover indicates near-term weakness.

Company Positive News

• Quarterly PAT turnaround (+216% variation) shows strong recovery.
• EPS of 76.2 ₹ provides valuation comfort.
• Institutional holdings (FII and DII) increased marginally, reflecting confidence.

Industry

• Industry PE at 11.3 is close to CHENNPETRO’s PE (11.6), showing fair valuation alignment.
• Petrochemical and refining industry is cyclical, influenced by crude prices and demand trends.

Conclusion

⚖️ CHENNPETRO is consolidating with bullish bias, trading above its 200 DMA but below 50 DMA. Entry near 860–880 ₹ could be considered for short-term gains, with exit around 900–930 ₹. A breakout above 1,000 ₹ would confirm continuation of the uptrend. Fundamentals show strong recovery in profits, but weak return ratios and short-term technical weakness remain concerns.