DCMSHRIRAM - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.5

📊 Technical Analysis

• Chart Patterns: Price (1,211 ₹) is slightly below 50 DMA (1,231 ₹) but above 200 DMA (1,198 ₹), showing near-term weakness but long-term support.
• Moving Averages: Neutral bias; price oscillating between 50 DMA resistance and 200 DMA support.
• RSI: 47.8 → neutral zone, neither overbought nor oversold.
• MACD: 1.12 → mildly bullish, suggesting potential for upward momentum.
• Bollinger Bands: Price near mid-band, indicating consolidation with limited volatility.
• Volume Trends: Current volume (47,588) is below 1-week average (65,528), showing weak participation and lack of strong buying interest.

📈 Momentum & Signals

• Short-term Momentum: Neutral to slightly bullish due to positive MACD.
• Support Zones: 1,200 ₹ (near-term), 1,150 ₹ (strong support), 1,100 ₹ (major support).
• Resistance Zones: 1,231 ₹ (50 DMA), 1,300 ₹ (psychological), 1,350 ₹ (major resistance).
• Optimal Entry: 1,200–1,150 ₹ range if RSI dips closer to 45.
• Optimal Exit: 1,300–1,350 ₹ range unless breakout above 1,350 ₹.
• Trend Status: Stock is consolidating with mild bullish bias; reversal possible if price sustains above 1,231 ₹.

✅ Positive

• Strong quarterly PAT growth (168 Cr. vs 96.7 Cr.), showing operational improvement.
• EPS of 44.2 ₹ supports valuation strength.
• DII holdings increased (+0.20%), showing domestic institutional confidence.
• Dividend yield at 0.74% provides shareholder returns.

⚠️ Limitation

• Price below 50 DMA, showing short-term weakness.
• ROE (8.07%) and ROCE (10.8%) are modest compared to industry leaders.
• PEG ratio (-1.46) suggests poor growth prospects relative to valuation.

📉 Company Negative News

• FII holdings decreased (-0.17%), showing reduced foreign investor confidence.
• Stock trading well below 52-week high (1,502 ₹), reflecting weak momentum.

📈 Company Positive News

• Quarterly PAT surged by 242%, showing strong recovery.
• DII holdings increased, balancing FII outflows.
• Dividend yield supports investor sentiment.

🏭 Industry

• Industry PE at 23.7, lower than company PE (27.4), suggesting DCMSHRIRAM trades at a slight premium.
• Chemicals and diversified sector remains cyclical, with moderate growth outlook.

🔎 Conclusion

• Stock is consolidating with mild bullish signals.
• Best entry near 1,200–1,150 ₹; exit near 1,300–1,350 ₹ unless breakout above 1,350 ₹.
• Long-term investors should monitor earnings sustainability and institutional flows before committing.