DMART - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.4

📊 Chart Patterns & Trend: DMART is currently in a corrective phase after falling from its 52-week high of 4,950 ₹. The stock is trading below both 50 DMA (4,053 ₹) and 200 DMA (4,176 ₹), indicating weakness and a reversal from its prior uptrend.

📈 Moving Averages:

- Current price (3,820 ₹) is below both 50 DMA and 200 DMA, signaling bearish sentiment.

- The crossover suggests medium-term downtrend pressure.

📉 RSI: At 29.6, RSI is oversold, indicating potential for a short-term bounce but overall weak momentum.

📉 MACD: Negative (-80.5), confirming bearish crossover and strong downward momentum.

📊 Bollinger Bands: Price is near the lower band, suggesting oversold conditions and possible short-term support.

📊 Volume Trends: Current volume (3,33,267) is below the 1-week average (4,21,271), showing reduced participation and lack of strong buying interest.

🎯 Entry Zone: 3,750–3,800 ₹ (near support).

🎯 Exit Zone: 4,050–4,150 ₹ (near 50 DMA resistance).

⚡ Support Levels: 3,750 ₹ and 3,337 ₹ (major support).

⚡ Resistance Levels: 4,150 ₹ and 4,500 ₹.

Positive

• Strong ROCE (18.4%) and ROE (14.0%) indicate efficient capital use.
• Debt-to-equity ratio is very low (0.06), ensuring financial stability.
• FII holdings increased (+0.48%), showing foreign investor confidence.
• EPS of 45.8 ₹ supports long-term earnings visibility.

Limitation

• High P/E (83.3) compared to industry average (44.6), making the stock expensive.
• Dividend yield is 0.00%, offering no income return.
• Stock trading below both 50 DMA and 200 DMA indicates bearish trend.
• Weak volume participation compared to average.

Company Negative News

• Quarterly PAT declined from 830 Cr. to 747 Cr.
• MACD strongly negative, confirming bearish momentum.
• Stock has lost 30% from its 52-week high.

Company Positive News

• Quarterly profit variation still positive at 5.09% YoY.
• Strong fundamentals with low debt and consistent earnings.
• FII inflows reflect confidence despite short-term weakness.

Industry

• Industry P/E at 44.6, much lower than DMART’s 83.3, suggesting overvaluation.
• Retail sector remains resilient with long-term demand outlook.

Conclusion

⚖️ DMART is currently reversing from its uptrend and showing bearish signals with RSI oversold and MACD negative. Short-term traders may consider entry near 3,750–3,800 ₹ with exits around 4,050–4,150 ₹. The stock is in a corrective phase, consolidating near support, and requires a breakout above 4,150 ₹ to regain bullish momentum.