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COLPAL - Technical Analysis with Chart Patterns & Indicators

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Rating: 4

Last Updated Time : 28 May 26, 07:19 pm

Technical Rating: 4.0

Stock Code COLPAL Market Cap 56,969 Cr. Current Price 2,095 ₹ High / Low 2,516 ₹
Stock P/E 42.4 Book Value 58.2 ₹ Dividend Yield 2.43 % ROCE 108 %
ROE 82.7 % Face Value 1.00 ₹ DMA 50 2,098 ₹ DMA 200 2,184 ₹
Chg in FII Hold -1.58 % Chg in DII Hold 1.75 % PAT Qtr 366 Cr. PAT Prev Qtr 330 Cr.
RSI 45.4 MACD 11.7 Volume 2,18,552 Avg Vol 1Wk 6,61,725
Low price 1,782 ₹ High price 2,516 ₹ PEG Ratio 5.05 Debt to equity 0.03
52w Index 42.6 % Qtr Profit Var 3.01 % EPS 48.7 ₹ Industry PE 43.0

📊 Chart Patterns & Trend: COLPAL is consolidating after a decline from its 2,516 ₹ high. Current price (2,095 ₹) is near the 50 DMA (2,098 ₹) but below the 200 DMA (2,184 ₹), showing short-term neutrality with medium-term weakness. Support lies near 2,050–2,070 ₹, with resistance at 2,150–2,200 ₹. Trendlines suggest sideways consolidation with mild bullish undertone.

📈 Moving Averages: Price aligned with 50 DMA but below 200 DMA, indicating consolidation with medium-term caution.

📉 RSI: At 45.4, RSI is mildly bearish, showing weak momentum.

📈 MACD: Positive (11.7), confirming mild bullish momentum.

📊 Bollinger Bands: Price is near the mid-band, suggesting consolidation with potential breakout.

📊 Volume Trends: Current volume (2,18,552) is well below the 1-week average (6,61,725), showing weak participation and lack of breakout strength.

💡 Momentum Signals: Neutral to mildly bullish bias. A breakout above 2,150–2,200 ₹ could trigger upside toward 2,300–2,400 ₹, while breakdown below 2,050 ₹ risks further decline.

🎯 Entry Zone: 2,050–2,070 ₹ (support region).

🎯 Exit Zone: 2,150–2,200 ₹ (resistance region; extended target 2,300–2,400 ₹).

📌 Status: Consolidating with weak momentum.

Positive

✔ EPS of 48.7 ₹ supports valuation strength.

✔ Exceptional ROCE (108%) and ROE (82.7%).

✔ Debt-to-equity ratio of 0.03 indicates negligible leverage.

✔ Dividend yield of 2.43% adds investor appeal.

✔ DII holdings increased (+1.75%), reflecting domestic institutional confidence.

Limitation

⚠ Price trading below 200 DMA, showing medium-term weakness.

⚠ RSI at 45.4 indicates weak momentum.

⚠ PEG ratio of 5.05 suggests expensive growth relative to valuation.

⚠ Volume significantly below average, limiting breakout potential.

⚠ High P/E (42.4) compared to industry PE (43.0), showing premium valuation.

Company Negative News

⚠ FII holdings decreased (-1.58%), showing reduced foreign investor confidence.

Company Positive News

✔ Quarterly PAT growth (366 Cr. vs 330 Cr.) highlights earnings improvement.

✔ DII inflows (+1.75%) reflect domestic confidence.

✔ Dividend yield of 2.43% adds stability for investors.

Industry

🏭 Consumer goods sector benefits from steady demand and strong brand loyalty.

📈 Industry PE (43.0) close to COLPAL’s PE (42.4), suggesting fair valuation relative to peers.

Conclusion

📌 COLPAL is consolidating near support with weak momentum. Entry around 2,050–2,070 ₹ offers tactical opportunity, while exits near 2,150–2,200 ₹ are prudent unless momentum strengthens for a breakout toward 2,300–2,400 ₹. Long-term investors may hold for strong fundamentals, while traders should monitor RSI and volume for breakout confirmation.

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