DEEPAKFERT - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.5

📊 Technical Analysis

• Chart Patterns: Price (1,211 ₹) is below both 50 DMA (1,362 ₹) and 200 DMA (1,366 ₹), indicating weakness.
• Moving Averages: Bearish bias as price trades under short-term and long-term averages.
• RSI: 27.4 → oversold zone, suggesting potential for a technical rebound but trend remains weak.
• MACD: -55.5 → strong bearish crossover, confirming downward momentum.
• Bollinger Bands: Price near lower band, indicating oversold conditions and possible short-term bounce.
• Volume Trends: Current volume (1.61 Lakh) is below 1-week average (1.87 Lakh), showing weak participation.

📈 Momentum & Signals

• Short-term Momentum: Bearish bias with oversold RSI suggesting possible short-term bounce.
• Support Zones: 1,200 ₹ (near-term), 1,100 ₹ (strong support), 888 ₹ (52-week low).
• Resistance Zones: 1,362 ₹ (50 DMA), 1,366 ₹ (200 DMA), 1,450 ₹ (psychological resistance).
• Optimal Entry: 1,200–1,100 ₹ range if RSI remains oversold.
• Optimal Exit: 1,362–1,450 ₹ range unless breakout above 1,450 ₹.
• Trend Status: Stock is trending downward with oversold signals; possible consolidation near support levels.

✅ Positive

• ROCE (14.9%) and ROE (12.3%) show moderate efficiency.
• Dividend yield at 0.84% provides shareholder returns.
• DII holdings increased (+0.34%), showing domestic institutional confidence.
• Low debt-to-equity ratio (0.13) indicates financial stability.

⚠️ Limitation

• Price trading below both 50 DMA and 200 DMA, showing weakness.
• High P/E (40.4) compared to industry PE (20.0), indicating stretched valuation.
• Quarterly profit variation down by -50%, showing earnings pressure.

📉 Company Negative News

• PAT dropped from 86.8 Cr. to 50 Cr. in the latest quarter.
• FII holdings decreased (-0.31%), showing reduced foreign investor confidence.
• Stock trading well below 52-week high (1,779 ₹), reflecting weak momentum.

📈 Company Positive News

• DII holdings increased, balancing FII outflows.
• Dividend yield supports investor sentiment.
• Debt levels remain low, providing financial flexibility.

🏭 Industry

• Industry PE at 20.0, much lower than company PE (40.4), suggesting Deepak Fert trades at a premium.
• Fertilizer and chemicals sector remains cyclical, with demand linked to agriculture and commodity prices.

🔎 Conclusion

• Stock is in a downtrend with oversold RSI suggesting possible short-term bounce.
• Best entry near 1,200–1,100 ₹; exit near 1,362–1,450 ₹ unless breakout above 1,450 ₹.
• Long-term investors should be cautious due to stretched valuations and declining profitability.