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COROMANDEL - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.6

Last Updated Time : 03 Feb 26, 05:12 pm

Technical Rating: 3.6

Stock Code COROMANDEL Market Cap 65,560 Cr. Current Price 2,222 ₹ High / Low 2,720 ₹
Stock P/E 30.2 Book Value 410 ₹ Dividend Yield 0.54 % ROCE 24.6 %
ROE 17.5 % Face Value 1.00 ₹ DMA 50 2,284 ₹ DMA 200 2,215 ₹
Chg in FII Hold -0.66 % Chg in DII Hold 0.81 % PAT Qtr 530 Cr. PAT Prev Qtr 816 Cr.
RSI 40.9 MACD -15.2 Volume 47,784 Avg Vol 1Wk 2,40,885
Low price 1,590 ₹ High price 2,720 ₹ PEG Ratio 3.79 Debt to equity 0.05
52w Index 56.0 % Qtr Profit Var 0.86 % EPS 76.1 ₹ Industry PE 18.5

📊 Technical Analysis

  • Chart Patterns: COROMANDEL is trading at 2,222 ₹, below its recent high of 2,720 ₹, showing weakness after a rally. Price action suggests sideways consolidation with bearish undertones.
  • Moving Averages: Current price is below 50 DMA (2,284 ₹) but slightly above 200 DMA (2,215 ₹), indicating indecision and consolidation.
  • RSI: At 40.9, the stock is approaching oversold territory, suggesting limited downside but weak momentum.
  • MACD: Negative (-15.2), confirming bearish crossover and short-term weakness.
  • Bollinger Bands: Price is near the lower band, hinting at oversold conditions and possible mean reversion.
  • Volume Trends: Current volume (47,784) is much lower than 1-week average (2,40,885), showing reduced participation and lack of strong buying interest.

📈 Momentum & Signals

  • Short-Term Momentum: Weak, with potential for a relief rally if RSI-driven bounce occurs.
  • Support Zones: 2,200 ₹ (near-term support), 2,150 ₹ (strong support), 1,590 ₹ (long-term support).
  • Resistance Zones: 2,284 ₹ (50 DMA), 2,350 ₹ (intermediate resistance), 2,450–2,500 ₹ (major resistance).
  • Optimal Entry: Around 2,180–2,220 ₹ if support holds.
  • Optimal Exit: 2,280–2,350 ₹ range, unless breakout above 2,450 ₹ confirms reversal.
  • Trend Status: Currently consolidating with bearish bias; reversal possible only if price sustains above 2,284–2,350 ₹.

✅ Positive

  • Strong market cap (65,560 Cr.) ensures liquidity and stability.
  • High EPS (76.1 ₹) reflects strong earnings power.
  • ROCE (24.6%) and ROE (17.5%) indicate efficient capital use.
  • Low debt-to-equity (0.05) ensures financial resilience.

⚠️ Limitation

  • Stock P/E (30.2) is significantly higher than industry PE (18.5), suggesting overvaluation.
  • PEG ratio of 3.79 indicates expensive growth prospects.
  • Dividend yield of 0.54% is low, offering limited income support.
  • Weak technical signals with price below 50 DMA and MACD negative.

📉 Company Negative News

  • FII holdings declined (-0.66%), showing reduced foreign investor confidence.
  • PAT dropped from 816 Cr. to 530 Cr., reflecting earnings slowdown.

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