CRAFTSMAN - Technical Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Technical Rating: 4.4

Let’s unpack Craftsman Automation Ltd. from a short-term trading lens

📈 Trend Strength & Price Structure

Current Price: ₹6,448 is substantially above both 50 DMA (₹5,773) and 200 DMA (₹5,236), confirming a strong uptrend.

Price is approaching its 52-week high of ₹7,121 — trend still intact, with bullish bias.

Trend Status: Trending upward with signs of momentum exhaustion as RSI heats up.

💹 Momentum & Indicators

RSI: 67.0 – Bullish but close to overbought territory (70+), caution for potential short-term pullback.

MACD: 224 – Strong positive divergence implies robust momentum and trend continuation.

Volume Spike: 1.23L vs 45K 1-week avg – Massive volume surge, confirming strong buying interest.

🔄 Moving Averages

Indicator Level (₹) Signal

50 DMA 5,773 Price well above → bullish

200 DMA 5,236 Solid long-term support

This alignment supports sustained buying pressure and trend confidence.

📎 Bollinger Bands & Volatility

Inferred from momentum and volume surge: price near upper band, suggesting elevated volatility.

Possibility of sideways consolidation before the next leg up, or a healthy pullback.

🛒 Short-Term Entry & Exit Zones

Zone Price Range (₹) Commentary

Entry Zone 6,250–6,350 Ideal re-entry zone on slight dip

Resistance 6,900–7,100 Near historical high, caution zone

Exit Target 7,200–7,300 Momentum breakout target

Trailing stop-loss advisable near ₹6,200 in case of reversal.

🧠 Strategic Signals

FII holding ↑ 0.19% shows mild but positive sentiment.

DII holding ↓ 0.05% suggests potential booking profits.

High PEG Ratio (7.10) = valuation might be stretched → long-term caution.

Debt to Equity (0.83) is on the higher side — levered but not alarming.

🧭 Conclusion

Craftsman Automation is riding a strong bullish wave, with volume confirmation and technical support from DMAs and MACD. Momentum is solid, though RSI warns of overheating. Traders may look for minor dips to accumulate and ride a push toward the ₹7,200 mark, keeping an eye on valuation and potential consolidation near highs.

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