DCMSHRIRAM - Technical Analysis

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

Technical Rating: 4.1

Here’s a fresh breakdown of DCM Shriram Ltd. through a short-term technical lens

📉 Trend Analysis

Current Price: ₹1,422

Trading above 50 DMA (₹1,265) and 200 DMA (₹1,130) → confirming a strong uptrend

Price nearing its 52-week high of ₹1,502, indicating the stock is trending upward

However, momentum may be slowing as it approaches resistance

💹 Momentum Indicators

RSI: 63.8

Trending toward overbought zone (>70) → shows bullish sentiment but may face short-term cooling

MACD: 53.4

Strong positive crossover → momentum intact

Volume: 1.3L vs avg 2.28L

Below average volume hints at reduced buying strength, possibly near a consolidation zone

📊 Moving Averages

Indicator Level (₹) Signal

50 DMA 1,265 Price above → bullish

200 DMA 1,130 Solid support zone

Trend confirmation is visible, and pullbacks toward the 50 DMA may offer favorable re-entry.

📎 Bollinger Bands

Price inferred to be near upper band, confirming bullish phase

Slight expansion expected; however, lack of volume could limit breakout potential in near term

📍 Key Trading Zones

Type Range (₹) Action Plan

Entry Zone 1,380–1,400 Accumulate near minor support

Resistance 1,490–1,510 Likely ceiling → watch for breakout

Exit Target 1,540–1,580 Swing target post breakout confirmation

Support Zone 1,320–1,350 Strong cushion for re-entry on pullback

📌 Additional Signals

FII Hold ↑ 0.04% and DII Hold ↑ 0.28% → mild positive institutional sentiment

Quarterly PAT dropped from ₹179 Cr. to ₹113 Cr. → weakening fundamentals could cap upside

Negative PEG (-2.04) → possible overvaluation or low growth prospects

Low Debt (0.36) → capital flexibility intact

🧭 Conclusion

DCM Shriram is riding a healthy uptrend, supported by strong MACD, rising price action above DMAs, and favorable RSI. Near-term consolidation may follow unless volume surges above resistance. A sustained move beyond ₹1,510 can unlock upside toward ₹1,580+, while dips near ₹1,380 offer swing entry points.

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