COROMANDEL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.1

📉 COROMANDEL is currently in a reversing phase, with bearish momentum indicators and price action below short-term averages.

📊 Technical Overview

• Trend Status: Reversing — price has declined from its 52-week high of ₹2,720 to ₹2,162, showing signs of weakness.
• Moving Averages: Price is below 50 DMA (₹2,250) but slightly above 200 DMA (₹2,155), indicating a fragile support level.
• RSI (38.7): Near oversold territory, suggesting weak momentum and potential for a short-term bounce.
• MACD (-22.6): Negative crossover confirms bearish sentiment.
• Bollinger Bands: Price near lower band, indicating volatility and possible support zone.
• Volume: Slightly above average (9.33L vs 8.89L), showing active trading interest despite weakness.

📌 Entry & Exit Zones

• Support Zone: ₹2,100–₹2,150 — potential entry zone if reversal signals emerge.
• Resistance Zone: ₹2,250–₹2,300 — ideal for exit or partial profit booking.
• Breakout Level: ₹2,400 — crossing this could signal trend recovery.

✅ Positive

• Strong ROCE (24.6%) and ROE (17.5%) reflect efficient capital use.
• Low debt-to-equity ratio (0.05) supports financial stability.
• Quarterly PAT increased from ₹508 Cr to ₹816 Cr, showing strong operational performance.
• EPS of ₹75.9 and consistent dividend payout.

⚠️ Limitation

• Price trading below 50 DMA with bearish MACD and weak RSI.
• High PEG ratio (3.70) suggests valuation concerns relative to growth.
• Price action still far from 52-week high, indicating underperformance.

📰 Company Negative News

• Technical indicators show bearish momentum and lack of short-term strength.

🌟 Company Positive News

• Strong quarterly earnings and marginal increase in both FII (+0.17%) and DII (+0.02%) holdings.

🏭 Industry

• Operates in agrochemicals and fertilizers, a sector influenced by seasonal demand and government policies.
• Industry P/E (22.7) is lower than the stock’s (29.5), indicating a valuation premium.

🧾 Conclusion

• COROMANDEL is technically weak in the short term with bearish indicators and declining price action.
• Entry near ₹2,100–₹2,150 only if reversal signs strengthen; watch for breakout above ₹2,400.
• Long-term investors may hold for fundamentals and sector potential; short-term traders should remain cautious.