DALBHARAT - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.6

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

📊 Technical Overview

• Trend Status: Reversing — price has declined from ₹2,496 to ₹2,083, showing signs of weakness and trend reversal.
• Moving Averages: Price is below 50 DMA (₹2,233) and just under 200 DMA (₹2,115), signaling bearish pressure.
• RSI (28.7): Deep in oversold territory, indicating weak momentum but potential for a technical bounce.
• MACD (-52.4): Strong negative crossover confirms bearish sentiment.
• Bollinger Bands: Price near lower band, suggesting volatility and possible short-term support.
• Volume: Slightly above average (3.07L vs 2.83L), indicating active selling pressure.

📌 Entry & Exit Zones

• Support Zone: ₹2,000–₹2,050 — potential entry zone if reversal signals emerge.
• Resistance Zone: ₹2,230–₹2,250 — ideal for exit or partial profit booking.
• Breakout Level: ₹2,300+ — crossing this could signal trend recovery.

✅ Positive

• Zero debt and clean balance sheet.
• EPS of ₹6.98 and moderate dividend yield (0.44%).
• Positive changes in both FII (+0.52%) and DII (+0.44%) holdings.

⚠️ Limitation

• Price trading below key moving averages with bearish MACD and oversold RSI.
• Extremely high P/E (298) and negative PEG ratio (-94.1) suggest severe overvaluation.
• Low ROCE (2.56%) and ROE (2.36%) reflect weak capital efficiency.

📰 Company Negative News

• Quarterly PAT dropped from ₹33.0 Cr to ₹14.0 Cr, indicating earnings pressure.

🌟 Company Positive News

• Quarterly profit variation of 40% suggests potential recovery signs despite recent dip.
• Institutional interest remains positive with net increase in holdings.

🏭 Industry

• Operates in cement and building materials, a cyclical sector tied to infrastructure and real estate demand.
• Industry P/E (38.9) is significantly lower than the stock’s, indicating valuation premium.

🧾 Conclusion

• DALBHARAT is technically weak in the short term with bearish indicators and declining price action.
• Entry near ₹2,000–₹2,050 only if reversal signs strengthen; watch for breakout above ₹2,300.
• Long-term investors should evaluate valuation risks; short-term traders should remain cautious and monitor support levels.