COALINDIA - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.1

📊 Chart Patterns: COALINDIA is trading near its 50 DMA (383 ₹) and slightly below its 200 DMA (390 ₹), showing consolidation around key support/resistance levels. Current price (385 ₹) is stable after testing highs (417 ₹).

📈 Moving Averages: Price ≈ 50 DMA and 200 DMA → neutral alignment. Sustaining above 390 ₹ would confirm bullish continuation, while a drop below 383 ₹ may trigger weakness.

📈 RSI: At 55.8, RSI is neutral-to-bullish, suggesting steady momentum without being overbought.

📈 MACD: Positive (0.60), showing mild bullish crossover and short-term upward bias.

📊 Bollinger Bands: Price near mid-band, indicating consolidation with potential breakout if volume strengthens.

📊 Volume Trends: Current volume (26,23,922) is below 1-week average (36,85,688), showing reduced participation and lack of strong breakout signals.

📍 Support & Resistance:

- Strong support: 383 ₹ (50 DMA)

- Major support: 349 ₹ (recent low)

- Immediate resistance: 390 ₹ (200 DMA)

- Major resistance: 417 ₹ (52-week high)

🚦 Momentum Signals: Short-term momentum is mildly bullish. Entry zone: 380–385 ₹ near support. Exit zone: 410–417 ₹ if resistance is tested. Breakout above 417 ₹ would confirm continuation of uptrend.

📈 Trend Status: The stock is consolidating with bullish bias, awaiting breakout confirmation.

Positive

• Strong ROCE (96.6%) and ROE (96.1%) highlight exceptional efficiency.
• Dividend yield of 6.90% provides attractive income support.
• EPS of 34.5 ₹ supports valuation comfort.
• Quarterly PAT surged to 8,342 Cr. from 116 Cr., showing massive turnaround.
• Debt-to-equity ratio of 0.03 indicates near debt-free status.

Limitation

• Stock trading close to DMA levels, showing indecision and consolidation.
• Volume below average, indicating lack of strong buying interest.
• P/E (11.2) slightly below industry PE (12.4), limiting rerating potential.

Company Negative News

• FII holdings declined (-0.20%), showing reduced foreign investor confidence.

Company Positive News

• DII holdings increased (+0.14%), reflecting domestic institutional support.
• Quarterly PAT growth (+102%) highlights strong operational performance.

Industry

• Industry PE at 12.4 is slightly higher than COALINDIA’s PE (11.2), showing relative undervaluation.
• Coal sector benefits from energy demand but faces long-term sustainability and regulatory challenges.

Conclusion

⚖️ COALINDIA is consolidating near its DMA levels with mild bullish bias. Entry near 380–385 ₹ could be considered for short-term gains, with exit around 410–417 ₹. A breakout above 417 ₹ would confirm continuation of the uptrend. Strong fundamentals, high dividend yield, and efficiency support long-term holding, though short-term consolidation and weak volume trends suggest cautious positioning.