CONCORDBIO - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.4

📊 Chart Patterns: CONCORDBIO is trading below both its 50 DMA (1,455 ₹) and 200 DMA (1,625 ₹), showing bearish undertone. Current price (1,341 ₹) is near its 52-week low (1,315 ₹), reflecting strong selling pressure and weak sentiment.

📉 Moving Averages: Price < 50 DMA < 200 DMA → bearish alignment. Trend remains weak until price crosses 1,455–1,625 ₹.

📉 RSI: At 36.9, RSI is oversold, suggesting potential for short-term rebound but confirming weak momentum.

📉 MACD: Strongly negative (-30.9), 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 (56,452) is significantly below 1-week average (1,24,026), showing reduced participation and lack of strong accumulation.

📍 Support & Resistance:

- Strong support: 1,315 ₹ (recent low)

- Immediate resistance: 1,455 ₹ (50 DMA)

- Major resistance: 1,625 ₹ (200 DMA)

- Long-term resistance: 1,800–1,850 ₹

🚦 Momentum Signals: Short-term momentum is weak but oversold. Entry zone: 1,320–1,340 ₹ near support. Exit zone: 1,450–1,480 ₹ if resistance is tested. Sustained breakout above 1,625 ₹ would confirm reversal attempt.

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

Positive

• Debt-free company (Debt-to-equity: 0.00).
• Strong ROCE (28.4%) and ROE (21.4%) indicate efficient capital use.
• DII holdings increased (+0.70%), showing domestic institutional support.
• EPS of 30.7 ₹ supports valuation comfort.

Limitation

• Stock trading below both 50 DMA and 200 DMA, showing weak technical strength.
• RSI and MACD both confirm bearish momentum.
• PEG ratio (1.63) suggests expensive valuation relative to growth.
• Dividend yield of 0.80% is modest, limiting income support.

Company Negative News

• Quarterly PAT declined to 62.9 Cr. from 42.6 Cr., showing -36.3% variation.
• FII holdings reduced (-1.07%), showing reduced foreign investor confidence.

Company Positive News

• DII holdings increased (+0.70%), reflecting domestic institutional confidence.
• EPS remains strong at 30.7 ₹ despite profit decline.

Industry

• Industry PE at 30.6 is lower than CONCORDBIO’s PE (43.6), showing relative overvaluation.
• Biopharma sector benefits from long-term demand growth but faces regulatory and margin pressures.

Conclusion

⚖️ CONCORDBIO is consolidating with bearish bias, trading near its 52-week low and well below key moving averages. Entry near 1,320–1,340 ₹ could be considered for short-term rebound trades, with exit around 1,450–1,480 ₹. A breakout above 1,625 ₹ (200 DMA) would confirm reversal. Strong fundamentals, debt-free status, and efficiency provide stability, but declining profits, overvaluation, and weak technicals remain concerns for long-term investors.