DMART - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 2.9

📉 DMART is currently consolidating with bearish momentum signals. Technical indicators suggest caution for short-term traders, while long-term investors may monitor for trend reversal.

📊 Technical Analysis Summary

• Trend Status: Consolidating with downside bias
• RSI (31.6): Near oversold zone — weak momentum
• MACD (-81.4): Bearish crossover — confirms downward pressure
• Volume: Slightly above 1-week average — mild activity
• DMA 50 vs Price: Price below 50 DMA (₹4,372) — short-term bearish
• DMA 200 vs Price: Price below 200 DMA (₹4,259) — long-term weakness
• Bollinger Bands: Price near lower band — potential bounce zone

Sources: Trendlyne Analyst Reports

Trendlyne

, TradingView Technicals

TradingView

🎯 Entry & Exit Zones

• Support Levels: ₹4,050, ₹3,950, ₹3,850
• Resistance Levels: ₹4,300, ₹4,450, ₹4,600
• Optimal Entry: ₹4,050–₹4,150 (if RSI rebounds)
• Exit Target: ₹4,450–₹4,600 (short-term resistance)

✅ Positive

• Strong ROCE (18.4%) and ROE (14.0%) — efficient capital use
• EPS of ₹45.8 — consistent earnings
• Low debt-to-equity ratio (0.06) — financial stability
• FII holding increased by 0.48% — institutional confidence

⚠️ Limitation

• Price below both 50 DMA and 200 DMA — bearish signal
• MACD and RSI both negative — weak momentum
• High P/E (91.0) and PEG ratio (4.19) — valuation concerns
• No dividend yield — limited income potential

📉 Company Negative News

• Quarterly PAT declined from ₹830 Cr to ₹747 Cr
• Bearish technical indicators suggest short-term caution

📈 Company Positive News

• Strong brand presence and retail footprint
• Stable earnings and low debt profile

🏭 Industry

• Sector: Retail (Department Stores)
• Industry P/E: 53.1 vs DMART’s P/E: 91.0 — significantly overvalued
• High growth potential but competitive pressures persist

🧾 Conclusion

• DMART is consolidating with bearish short-term signals
• Entry near ₹4,050–₹4,150 with targets at ₹4,450–₹4,600
• Long-term investors may wait for trend reversal confirmation
• Valuation remains stretched — monitor earnings and sentiment shifts