EMAMILTD - Technical Analysis

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

Technical Rating: 3.1

Here’s a precise technical breakdown of Emami Ltd. (EMAMILTD) with pattern signals, zone targets, and trend commentary

📉 Trend Outlook

Current Price: ₹561 is below both 50 DMA (₹582) and 200 DMA (₹599)

Price is down significantly from its 52W high ₹860, and hovering near mid-range

Trend Status: Reversing, possibly forming a base, but strength is absent

📊 Momentum Indicators

RSI: 38.4 → approaching oversold zone, signaling exhaustion in selling pressure

MACD: -2.26 → bearish crossover remains intact, reflects fading momentum

Volume: 2.32L vs avg 2.86L → lower-than-average, no breakout signs yet

🧠 Together, these show weak momentum, with potential for bounce, but no confirmation yet.

📈 Moving Averages

DMA Value (₹) Signal

50 DMA 582 First hurdle

200 DMA 599 Long-term ceiling

Price under both → downtrend continuation unless reversed with volume and RSI strength.

📎 Bollinger Bands Setup

Price likely hugging lower band, confirming oversold territory

Band slightly stretched → potential bounce if volume returns

Band squeeze not evident → market indecision continues

🎯 Trade Zones

Zone Type Price Range (₹) Strategy

Entry Zone 535–555 Accumulate cautiously near base zone

Resistance 585–605 DMA cluster → breakout confirmation area

Exit Target 625–660 Short-term swing zone if trend resumes

Support Zone 510–520 Breakdown watch zone

🔒 Suggested stop-loss: ₹505 for short-term traders

🧾 Fundamental & Institutional Signals

FII ↓ 0.22%, DII ↑ 0.38% → slightly positive domestic sentiment

EPS ₹18.5, Stock P/E 30.5 vs Industry PE 59.2 → fair relative valuation

PEG of 204 → indicates overvaluation against growth trends

ROE/ROCE > 30% & low debt → strong business quality despite technical weakness

PAT slipped from ₹279 Cr. to ₹162 Cr. → momentum loss in earnings may be weighing on sentiment

🧭 Conclusion

Emami Ltd. is in a technical reversal zone, with weak momentum and soft volume. RSI suggests possible bottoming near ₹535–₹555. A convincing move above ₹605 backed by stronger volume and MACD reversal could shift bias toward bullish consolidation. Until then, range-bound or cautious bounce is expected.

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