DEEPAKNTR - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.8

📊 Technical Analysis

• Chart Patterns: Price (1,666 ₹) is slightly above 50 DMA (1,655 ₹) but below 200 DMA (1,883 ₹), showing short-term stability but long-term weakness.
• Moving Averages: Neutral short-term (hovering near 50 DMA), bearish long-term (below 200 DMA).
• RSI: 44.9 → neutral zone, suggesting consolidation with limited momentum.
• MACD: -30.0 → bearish crossover, confirming downward bias.
• Bollinger Bands: Price near mid-band, indicating consolidation with risk of further decline.
• Volume Trends: Current volume (2.38 Lakh) is higher than 1-week average (1.72 Lakh), showing active participation but mostly selling pressure.

📈 Momentum & Signals

• Short-term Momentum: Neutral to bearish due to MACD weakness.
• Support Zones: 1,650 ₹ (near-term), 1,600 ₹ (strong support), 1,513 ₹ (52-week low).
• Resistance Zones: 1,750 ₹ (psychological), 1,883 ₹ (200 DMA), 2,000 ₹ (major resistance).
• Optimal Entry: 1,600–1,650 ₹ range if RSI dips closer to 40.
• Optimal Exit: 1,750–1,850 ₹ range unless breakout above 1,883 ₹.
• Trend Status: Stock is consolidating with bearish bias; reversal possible only if price sustains above 1,883 ₹.

✅ Positive

• Debt-free balance sheet (Debt-to-equity 0.01).
• Quarterly PAT improved sequentially (112 Cr. vs 30.3 Cr.).
• DII holdings increased (+0.09%), showing domestic institutional support.

⚠️ Limitation

• Extremely high P/E (107) compared to industry PE (26.6), indicating stretched valuation.
• Weak ROCE (10.1%) and ROE (8.22%), showing poor capital efficiency.
• PEG ratio (-5.42) suggests poor growth prospects relative to valuation.

📉 Company Negative News

• Quarterly profit variation down by -21.5%.
• FII holdings decreased (-0.47%), showing reduced foreign investor confidence.
• Stock trading well below 52-week high (2,665 ₹), reflecting weak momentum.

📈 Company Positive News

• Sequential PAT recovery in latest quarter.
• DII holdings increased slightly, balancing FII outflows.
• Debt-free status supports financial stability.

🏭 Industry

• Industry PE at 26.6, much lower than company PE (107), suggesting Deepak Nitrite trades at a steep premium.
• Chemicals sector remains cyclical, with demand linked to industrial and export growth.

🔎 Conclusion

• Stock is consolidating with bearish bias and weak fundamentals.
• Best entry near 1,600–1,650 ₹; exit near 1,750–1,850 ₹ unless breakout above 1,883 ₹.
• Long-term investors should be cautious due to stretched valuations and declining profitability despite short-term PAT recovery.