CROMPTON - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.9

📉 CROMPTON is currently in a reversing phase, with bearish momentum indicators and price action below key moving averages.

📊 Technical Overview

• Trend Status: Reversing — price has declined from ₹419 to ₹285, hovering near its 52-week low of ₹278.
• Moving Averages: Price is below both 50 DMA (₹302) and 200 DMA (₹332), confirming a bearish trend.
• RSI (34.4): Approaching oversold territory, indicating weak momentum and potential for a technical bounce.
• MACD (-4.30): Negative crossover supports continued bearish pressure.
• Bollinger Bands: Price near lower band, suggesting volatility and possible short-term support.
• Volume: Slightly below average (46.4L vs 47.1L), indicating cautious trading activity.

📌 Entry & Exit Zones

• Support Zone: ₹275–₹285 — potential entry zone if reversal signals emerge.
• Resistance Zone: ₹300–₹310 — ideal for exit or partial profit booking.
• Breakout Level: ₹332 — crossing 200 DMA could signal trend recovery.

✅ Positive

• Strong ROCE (20.1%) and ROE (16.5%) reflect efficient capital use.
• Low debt-to-equity ratio (0.13) supports financial stability.
• Positive DII holding change (+2.31%) shows domestic institutional confidence.

⚠️ Limitation

• Price trading below key moving averages with bearish MACD and weak RSI.
• Negative PEG ratio (-20.0) and high P/E (34.7) suggest valuation concerns.
• Low 52-week index (4.95%) indicates significant underperformance.

📰 Company Negative News

• Quarterly PAT dropped from ₹171 Cr to ₹125 Cr, indicating earnings pressure.
• Decline in FII holdings (-3.64%) may reflect foreign investor caution.

🌟 Company Positive News

• Strong fundamentals and consistent dividend payout (1.06%).
• Domestic institutions increasing stake, signaling long-term confidence.

🏭 Industry

• Operates in consumer electricals, a sector driven by seasonal demand and urban consumption trends.
• Industry P/E (57.4) is significantly higher than the stock’s, suggesting potential undervaluation.

🧾 Conclusion

• CROMPTON is technically weak in the short term with bearish indicators and declining price action.
• Entry near ₹275–₹285 only if reversal signs strengthen; watch for breakout above ₹332.
• Long-term investors may hold for fundamentals and sector potential; short-term traders should remain cautious.