CROMPTON - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 19 Sept 25, 2:16 pm

Technical Rating: 3.6

Here’s a detailed technical analysis of CROMPTON

📊 Trend Overview

Current Trend: Reversing with bearish undertone

Price is below both 50 DMA (₹327) and 200 DMA (₹346), indicating short- and medium-term weakness.

RSI at 41.8 is in bearish territory, suggesting selling pressure.

MACD at -3.66 confirms a negative crossover and declining momentum.

📈 Technical Indicators

Moving Averages

Price (₹317) < 50 DMA (₹327) < 200 DMA (₹346): Bearish alignment

RSI (41.8)

Below 50, indicating weak momentum and potential oversold conditions.

MACD (-3.66)

Bearish crossover. Momentum is fading.

Bollinger Bands

Price near lower band, suggesting oversold conditions but no reversal confirmation yet.

Volume Trends

Current volume (16.95L) < 1-week average (21.52L): Weak participation

Indicates lack of conviction from buyers.

🔍 Short-Term Momentum Signals

Bearish Bias

Price below key moving averages and negative MACD confirm weakness.

RSI suggests sellers are in control.

DII inflows (+1.88%) are a positive divergence, but not yet reflected in price action.

📌 Support & Resistance Zones

Level Price (₹) Commentary

Support 1 310 Recent swing low

Support 2 301 52-week low

Resistance 1 327 50 DMA, short-term ceiling

Resistance 2 346 200 DMA, medium-term barrier

Resistance 3 370 Pre-breakdown zone

🎯 Entry & Exit Zones

Optimal Entry: ₹305–₹315 (on dips near support)

Exit Zone: ₹345–₹370 (partial profit booking)

Aggressive Target: ₹390+ if breakout above 200 DMA sustains

🧭 Summary

Trend: Reversing with bearish momentum

Momentum: Weak, confirmed by MACD, RSI, and volume

Outlook: Cautious; wait for reversal confirmation above ₹327

Valuation: Reasonable P/E (38.5) vs industry (56.6), strong ROE/ROCE, low debt, but declining profits and negative PEG (-22.2) suggest limited upside in the near term

Let me know if you'd like a visual chart or a simulated trade setup based on this analysis.

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