CRAFTSMAN - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.5

📈 CRAFTSMAN is currently in a trending phase, supported by price action above key moving averages, though momentum indicators show mixed signals.

📊 Technical Overview

• Trend Status: Trending upward — price has risen from ₹3,700 to ₹6,801, nearing its 52-week high of ₹7,325.
• Moving Averages: Price is above both 50 DMA (₹6,612) and 200 DMA (₹5,940), confirming bullish sentiment.
• RSI (52.2): Neutral zone, indicating balanced momentum with slight bullish bias.
• MACD (-35.9): Negative crossover suggests short-term weakness despite overall uptrend.
• Bollinger Bands: Price near upper band, indicating strength but also potential resistance.
• Volume: Above average (34K vs 26K), showing increased interest and participation.

📌 Entry & Exit Zones

• Support Zone: ₹6,600–₹6,650 — ideal for entry on pullbacks.
• Resistance Zone: ₹7,300–₹7,325 — potential exit or partial profit booking zone.
• Breakout Level: ₹7,325 — crossing this could lead to new highs.

✅ Positive

• Quarterly PAT increased from ₹27.5 Cr to ₹39.7 Cr, showing strong earnings momentum.
• EPS of ₹42.4 and price action above key moving averages.
• Positive DII holding change (+1.70%) reflects domestic institutional confidence.

⚠️ Limitation

• High P/E (160) and negative PEG ratio (-9.86) suggest severe overvaluation.
• ROCE (8.11%) and ROE (4.31%) are modest compared to industry benchmarks.
• MACD is negative, indicating short-term momentum weakness.

📰 Company Negative News

• Decline in FII holdings (-0.39%) may reflect foreign investor caution.

🌟 Company Positive News

• Strong quarterly profit growth (23.0%) and rising domestic institutional interest.

🏭 Industry

• Operates in engineering and manufacturing, a sector driven by industrial demand and capital expenditure cycles.
• Industry P/E (33.4) is significantly lower than the stock’s, indicating valuation premium.

🧾 Conclusion

• CRAFTSMAN is technically strong with bullish price structure but mixed momentum indicators.
• Entry near ₹6,600–₹6,650 is favorable; watch for breakout above ₹7,325.
• Long-term investors should evaluate valuation risks; short-term traders should monitor MACD and resistance levels.