DOMS - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.8

📊 Technical Analysis

• Chart Patterns: Price (2,600 ₹) is above both 50 DMA (2,541 ₹) and 200 DMA (2,524 ₹), showing bullish alignment.
• Moving Averages: Positive bias with price sustaining above short-term and long-term averages.
• RSI: 48.8 → neutral zone, suggesting balanced momentum with room for upside.
• MACD: 2.24 → mildly bullish crossover, supporting upward momentum.
• Bollinger Bands: Price near mid-band, indicating consolidation with potential breakout if volume rises.
• Volume Trends: Current volume (16,940) is slightly below 1-week average (18,264), showing moderate participation.

📈 Momentum & Signals

• Short-term Momentum: Neutral to bullish due to MACD strength and price above DMAs.
• Support Zones: 2,550 ₹ (near-term), 2,500 ₹ (strong support), 2,092 ₹ (52-week low).
• Resistance Zones: 2,650 ₹ (near-term), 2,800 ₹ (psychological), 3,065 ₹ (recent high).
• Optimal Entry: 2,550–2,500 ₹ range on dips.
• Optimal Exit: 2,800–3,000 ₹ range unless breakout above 3,065 ₹.
• Trend Status: Stock is consolidating with bullish bias; potential breakout if sustained above 2,650 ₹.

✅ Positive

• Strong ROCE (26.0%) and ROE (21.7%) indicate efficient capital use.
• EPS of 33.6 ₹ supports valuation strength.
• DII holdings increased (+1.47%), showing domestic institutional confidence.
• Quarterly PAT growth (55.8 Cr. vs 55.5 Cr.) remains stable with 16% variation improvement.

⚠️ Limitation

• High P/E (77.4) compared to industry PE (37.5), indicating stretched valuation.
• Dividend yield at 0.12% is low, limiting shareholder returns.
• Volume participation slightly below average, reducing breakout strength.

📉 Company Negative News

• FII holdings decreased (-0.58%), showing reduced foreign investor confidence.
• Stock trading below 52-week high (3,065 ₹), reflecting limited momentum.

📈 Company Positive News

• Stable PAT performance with sequential growth.
• DII holdings increased significantly, balancing FII outflows.
• Strong fundamentals with low debt-to-equity ratio (0.11).

🏭 Industry

• Industry PE at 37.5, much lower than company PE (77.4), suggesting DOMS trades at a premium.
• Stationery and consumer goods sector remains resilient with steady demand outlook.

🔎 Conclusion

• Stock is consolidating with bullish bias supported by DMAs and MACD.
• Best entry near 2,550–2,500 ₹; exit near 2,800–3,000 ₹ unless breakout above 3,065 ₹.
• Long-term investors should monitor valuation risks while leveraging strong fundamentals and sector resilience.