COHANCE - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.2

📊 Chart Patterns: COHANCE is trading well below its 50 DMA (658 ₹) and 200 DMA (873 ₹), showing a strong bearish undertone. Current price (537 ₹) is hovering near its 52-week low (518 ₹), reflecting heavy selling pressure and weak sentiment.

📉 Moving Averages: Price < 50 DMA < 200 DMA → clear bearish alignment. Trend remains weak until price crosses 658–873 ₹.

📉 RSI: At 26.7, RSI is deeply oversold, suggesting potential for short-term rebound but confirming strong bearish momentum.

📉 MACD: Strongly negative (-40.9), confirming bearish crossover and weak short-term momentum.

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

📊 Volume Trends: Current volume (3,19,053) is significantly below 1-week average (8,15,830), showing reduced participation and lack of strong accumulation.

📍 Support & Resistance:

- Strong support: 518 ₹ (recent low)

- Immediate resistance: 560–580 ₹

- Major resistance: 658 ₹ (50 DMA)

- Long-term resistance: 873 ₹ (200 DMA)

🚦 Momentum Signals: Short-term momentum is weak but oversold. Entry zone: 520–540 ₹ near support. Exit zone: 560–580 ₹ if resistance is tested. Sustained breakout above 658 ₹ would confirm reversal attempt.

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

Positive

• Debt-to-equity ratio of 0.05 indicates near debt-free status.
• DII holdings increased significantly (+9.41%), showing strong domestic institutional support.
• EPS of 12.0 ₹ provides valuation comfort despite weak price action.
• ROCE (16.0%) and ROE (12.5%) indicate moderate efficiency.

Limitation

• Stock trading far below both 50 DMA and 200 DMA, showing weak technical strength.
• RSI and MACD both confirm strong bearish momentum.
• PEG ratio (-2.68) suggests poor valuation relative to growth prospects.
• Dividend yield is 0.00%, offering no income support.

Company Negative News

• Quarterly PAT declined to 94.3 Cr. from 58.6 Cr., showing -32.2% variation.
• FII holdings reduced (-0.72%), showing reduced foreign investor confidence.

Company Positive News

• DII holdings surged (+9.41%), reflecting strong domestic institutional confidence.
• EPS remains stable at 12.0 ₹ despite profit decline.

Industry

• Industry PE at 30.6 is much lower than COHANCE’s PE (55.4), showing relative overvaluation.
• Specialty chemicals sector benefits from long-term demand but faces cyclical earnings and margin pressures.

Conclusion

⚖️ COHANCE is consolidating with bearish bias, trading near its 52-week low and well below key moving averages. Entry near 520–540 ₹ could be considered for short-term rebound trades, with exit around 560–580 ₹. A breakout above 658 ₹ (50 DMA) would confirm reversal. Strong DII support and low debt provide stability, but declining profits, overvaluation, and weak technicals remain concerns for long-term investors.