DIVISLAB - Technical Analysis

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

Technical Rating: 3.5

Here’s a fresh technical breakdown of Divi’s Laboratories Ltd. (DIVISLAB), mapping its current signals and tactical price levels

📈 Trend Status

Current Price: ₹6,676

Trading just above 50 DMA (₹6,607) and well above 200 DMA (₹6,009) → mild uptrend maintained, but momentum weakening

Recent high at ₹7,078 suggests price is pulling back after a rally

Overall Trend: Consolidating, not reversing yet, but strength is fading

📊 Momentum Indicators

RSI: 48.4 → Neutral zone, indicates loss of momentum

MACD: -12.9 → Bearish crossover, signals sluggish momentum

Volume: 2.1L vs avg 1.95L → Slightly elevated but not indicative of accumulation

Together, these show the stock is cooling off, possibly digesting previous gains.

📉 Moving Averages

DMA Level (₹) Interpretation

50 DMA 6,607 Minor support

200 DMA 6,009 Strong long-term support

The stock is perched above moving averages, but weak MACD and RSI suggest a pause before further upside.

📎 Bollinger Band Outlook

Price likely hovering near mid-band, implying rangebound movement

Bands tightening → reduced volatility, may precede breakout or breakdown

📍 Short-Term Trade Zones

Zone Type Price Range (₹) Commentary

Entry Zone 6,580–6,620 Accumulate near 50 DMA

Resistance 7,050–7,080 Short-term ceiling near 52W high

Exit Target 7,150–7,250 If breakout occurs above resistance

Support Zone 6,400–6,500 Re-entry zone on deeper pullback

Trailing stop-loss: ₹6,350

🧾 Institutional & Fundamental Context

FII Holding ↑ 1.73% → foreign confidence growing

DII Holding ↓ 1.67% → possible domestic profit-booking

Strong quarterly PAT growth (23%), zero debt, high ROE/ROCE → solid long-term profile

High P/E (81) and negative PEG (-8.46) → valuation discomfort may limit upside velocity

🧭 Conclusion

Divi’s Labs is currently consolidating after a strong run, with weakening momentum and rangebound price action. The setup favors accumulation near ₹6,600 with breakout potential toward ₹7,200 if volume improves. Watch MACD for trend reversal confirmation and RSI for directional strength.

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