COLPAL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.5

📊 Chart Patterns: COLPAL is trading below both its 50 DMA (2,189 ₹) and 200 DMA (2,368 ₹), showing bearish undertone. Current price (2,113 ₹) is close to support levels after a steep correction from highs (2,975 ₹).

📉 Moving Averages: Price < 50 DMA < 200 DMA → bearish alignment. Trend remains weak until price crosses 2,189–2,368 ₹.

📉 RSI: At 34.8, RSI is oversold, suggesting potential for short-term rebound but confirming weak momentum.

📉 MACD: Negative (-19.7), confirming bearish crossover and short-term weakness.

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

📊 Volume Trends: Current volume (2,34,174) is below 1-week average (3,50,835), showing reduced participation and lack of strong buying interest.

📍 Support & Resistance:

- Strong support: 2,064 ₹ (recent low)

- Immediate resistance: 2,189 ₹ (50 DMA)

- Major resistance: 2,368 ₹ (200 DMA)

- Long-term resistance: 2,975 ₹ (52-week high)

🚦 Momentum Signals: Short-term momentum is weak but oversold. Entry zone: 2,070–2,120 ₹ near support. Exit zone: 2,180–2,220 ₹ if resistance is tested. Breakout above 2,368 ₹ would confirm reversal attempt.

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

Positive

• Strong ROCE (105%) and ROE (81.2%) highlight exceptional efficiency.
• Dividend yield of 2.42% provides attractive income support.
• DII holdings increased (+2.61%), showing domestic institutional confidence.
• EPS of 48.8 ₹ supports valuation comfort.
• Debt-to-equity ratio of 0.04 indicates near debt-free status.

Limitation

• Stock trading below both 50 DMA and 200 DMA, showing weak technical strength.
• RSI and MACD both confirm bearish momentum.
• PEG ratio (4.31) suggests expensive valuation relative to growth.
• Volume below average, indicating lack of strong buying interest.

Company Negative News

• Quarterly PAT declined to 328 Cr. from 321 Cr., showing -17.1% variation.
• FII holdings reduced (-3.23%), showing reduced foreign investor confidence.

Company Positive News

• DII holdings increased (+2.61%), reflecting strong domestic institutional support.
• EPS remains strong at 48.8 ₹ despite profit decline.

Industry

• Industry PE at 49.7 is higher than COLPAL’s PE (43.2), showing relative undervaluation.
• FMCG sector benefits from consistent demand and defensive characteristics, though margins face inflationary pressures.

Conclusion

⚖️ COLPAL is consolidating with bearish bias, trading below key moving averages and showing oversold RSI. Entry near 2,070–2,120 ₹ could be considered for short-term rebound trades, with exit around 2,180–2,220 ₹. A breakout above 2,368 ₹ (200 DMA) would confirm reversal. Strong fundamentals, high ROCE/ROE, and dividend yield support long-term holding, but near-term weakness due to declining profits and bearish technicals persists.