CHENNPETRO - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.4

📈 CHENNPETRO is currently in a strong uptrend, supported by bullish momentum indicators and high trading volume.

📊 Technical Overview

• Trend Status: Trending upward — price has surged from ₹433 to ₹953, nearing its 52-week high.
• Moving Averages: Price is well above both 50 DMA (₹762) and 200 DMA (₹705), confirming bullish sentiment.
• RSI (75.5): Overbought zone, indicating strong momentum but potential for short-term pullback.
• MACD (33.9): Strong positive crossover supports continued bullish momentum.
• Bollinger Bands: Price near upper band, suggesting strength and possible volatility.
• Volume: Significantly above average (3.71 Cr vs 1.97 Cr), confirming strong buying interest.

📌 Entry & Exit Zones

• Support Zone: ₹900–₹920 — ideal for entry on pullbacks.
• Resistance Zone: ₹980–₹998 — potential exit or partial profit booking zone.
• Breakout Level: ₹998 — crossing this could lead to new highs.

✅ Positive

• Quarterly PAT surged from a loss of ₹56.6 Cr to ₹732 Cr.
• EPS of ₹76.2 and low P/E (12.5) suggest strong earnings at attractive valuation.
• Price action above key moving averages with bullish volume and MACD.

⚠️ Limitation

• RSI in overbought zone — short-term caution advised.
• Low ROCE (4.04%) and ROE (2.10%) compared to industry standards.
• Negative PEG ratio (-0.25) indicates valuation concerns relative to growth.

📰 Company Negative News

• Fundamentals show low return ratios despite recent profit spike.

🌟 Company Positive News

• Massive quarterly profit turnaround and strong EPS performance.
• Slight increase in both FII (+0.02%) and DII (+0.12%) holdings.

🏭 Industry

• Operates in oil refining and petrochemicals, a sector sensitive to crude prices and global demand.
• Industry P/E (21.4) is higher than the stock’s, suggesting potential undervaluation.

🧾 Conclusion

• CHENNPETRO is technically strong with bullish indicators and a sharp earnings recovery.
• Entry near ₹900–₹920 is favorable; watch for breakout above ₹998.
• Long-term investors may benefit from valuation and momentum; short-term traders should monitor RSI and resistance levels.