DMART - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | DMART | Market Cap | 2,50,025 Cr. | Current Price | 3,842 ₹ | High / Low | 4,950 ₹ |
| Stock P/E | 80.2 | Book Value | 366 ₹ | Dividend Yield | 0.00 % | ROCE | 18.4 % |
| ROE | 14.0 % | Face Value | 10.0 ₹ | DMA 50 | 3,861 ₹ | DMA 200 | 4,014 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | -0.19 % | PAT Qtr | 923 Cr. | PAT Prev Qtr | 747 Cr. |
| RSI | 48.8 | MACD | 1.81 | Volume | 4,89,495 | Avg Vol 1Wk | 4,95,696 |
| Low price | 3,529 ₹ | High price | 4,950 ₹ | PEG Ratio | 3.69 | Debt to equity | 0.06 |
| 52w Index | 22.0 % | Qtr Profit Var | 17.6 % | EPS | 47.9 ₹ | Industry PE | 39.3 |
📈 Chart & Trend Analysis: DMART is trading slightly below its 50 DMA (3,861 ₹) and 200 DMA (4,014 ₹), with the current price at 3,842 ₹. This indicates mild bearish bias and short-term weakness despite long-term strength.
📊 Momentum Indicators: RSI at 48.8 shows neutral momentum, neither overbought nor oversold. MACD at 1.81 is marginally positive, suggesting weak bullish crossover but lacking conviction.
📉 Bollinger Bands & Volume: Price is near the mid-band, reflecting consolidation. Current volume (4,89,495) is in line with weekly average (4,95,696), showing steady participation but no breakout signals.
🔑 Support & Resistance Zones:
- Support: 3,800 ₹ (near-term), 3,529 ₹ (major low)
- Resistance: 3,900–4,000 ₹ (DMA cluster), 4,200–4,300 ₹ (trendline resistance), 4,950 ₹ (52-week high)
Optimal Entry: 3,800–3,850 ₹ (near support)
Optimal Exit: 3,900–4,300 ₹ (resistance zone)
📌 Trend Status: The stock is consolidating with mild bearish bias, showing indecision around moving averages.
Positive
- Strong quarterly PAT growth (923 Cr. vs 747 Cr.), showing earnings momentum.
- Low debt-to-equity ratio (0.06) ensures financial stability.
- EPS of 47.9 ₹ supports valuation strength.
Limitation
- High P/E (80.2) compared to industry average (39.3), indicating stretched valuation.
- ROCE (18.4%) and ROE (14.0%) are modest compared to premium valuation.
- PEG ratio of 3.69 suggests expensive growth relative to earnings.
Company Negative News
- FII holding decreased (-0.02%) and DII holding decreased (-0.19%), showing reduced institutional confidence.
- Stock trading below both 50 DMA and 200 DMA, reflecting short-term weakness.
Company Positive News
- Quarterly profit variation (+17.6%) indicates strong earnings growth.
- Steady trading volumes confirm investor interest despite consolidation.
Industry
- Industry PE at 39.3 is much lower than DMART’s PE (80.2), suggesting premium valuation due to brand strength and growth expectations.
- Retail sector outlook remains favorable with rising consumer demand and expansion opportunities.
Conclusion
⚖️ DMART is consolidating near its moving averages, with neutral RSI and weak MACD signaling indecision. Fundamentals show strong earnings growth and low debt, but valuations are stretched relative to industry peers. Traders may consider entry near 3,800–3,850 ₹ with exits around 3,900–4,300 ₹. Momentum confirmation is needed before aggressive positioning, as the stock remains premium-valued and sensitive to institutional flows.
Would you like me to extend this into a basket overlay with peer benchmarking (comparing DMART against other retail sector stocks on valuation, ROE/ROCE, and momentum) so you can see relative strength before deciding entry?