DCMSHRIRAM - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.7

📈 DCMSHRIRAM is currently in a trending phase, supported by bullish momentum indicators and price action above key moving averages.

📊 Technical Overview

• Trend Status: Trending upward — price has risen from ₹903 to ₹1,280, with strong support above 50 DMA (₹1,242) and 200 DMA (₹1,187).
• Moving Averages: Price is above both 50 and 200 DMA, confirming bullish momentum.
• RSI (57.1): Mid-range, indicating healthy momentum with room for further upside.
• MACD (21.7): Positive crossover supports short-term bullish sentiment.
• Bollinger Bands: Price near upper band, suggesting strength but also potential resistance.
• Volume: Significantly below average (82K vs 9.36L), indicating low participation and possible caution.

📌 Entry & Exit Zones

• Support Zone: ₹1,240–₹1,260 — ideal for entry on pullbacks.
• Resistance Zone: ₹1,480–₹1,502 — potential exit or partial profit booking zone.
• Breakout Level: ₹1,502 — crossing this could lead to new highs.

✅ Positive

• Quarterly PAT surged from ₹96.7 Cr to ₹168 Cr, showing strong operational performance.
• EPS of ₹44.2 and ROCE (10.8%) reflect improving profitability.
• Price action above key moving averages with bullish MACD and RSI.
• Positive DII holding change (+0.20%) shows domestic institutional confidence.

⚠️ Limitation

• Volume significantly below average, suggesting limited conviction in the current rally.
• Negative PEG ratio (-1.54) and modest ROE (8.07%) indicate valuation and efficiency concerns.
• Price still below 52-week high, with potential resistance near ₹1,500.

📰 Company Negative News

• Decline in FII holdings (-0.17%) may reflect foreign investor caution.

🌟 Company Positive News

• Quarterly profit growth of 242% and strong earnings momentum.
• Stable fundamentals and improving technical structure.

🏭 Industry

• Operates in diversified chemicals and agri-inputs, a sector influenced by commodity cycles and rural demand.
• Industry P/E (25.4) is lower than the stock’s (29.0), indicating a slight valuation premium.

🧾 Conclusion

• DCMSHRIRAM is technically strong with bullish indicators and improving fundamentals.
• Entry near ₹1,240–₹1,260 is favorable; watch for breakout above ₹1,502.
• Long-term investors may benefit from earnings momentum; short-term traders should monitor volume and resistance levels.