FACT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.7
| Stock Code | FACT | Market Cap | 58,185 Cr. | Current Price | 899 ₹ | High / Low | 1,112 ₹ |
| Stock P/E | 3,929 | Book Value | 21.2 ₹ | Dividend Yield | 0.02 % | ROCE | 8.65 % |
| ROE | 1.61 % | Face Value | 10.0 ₹ | DMA 50 | 840 ₹ | DMA 200 | 853 ₹ |
| Chg in FII Hold | 0.00 % | Chg in DII Hold | 0.01 % | PAT Qtr | -67.9 Cr. | PAT Prev Qtr | 20.9 Cr. |
| RSI | 59.0 | MACD | 30.0 | Volume | 1,55,018 | Avg Vol 1Wk | 2,26,005 |
| Low price | 652 ₹ | High price | 1,112 ₹ | PEG Ratio | -62.3 | Debt to equity | 2.79 |
| 52w Index | 53.7 % | Qtr Profit Var | -949 % | EPS | 0.43 ₹ | Industry PE | 18.5 |
📈 Chart Patterns: Price is trading near the 50 DMA (840 ₹) and 200 DMA (853 ₹), showing sideways consolidation. Trendlines suggest resistance near 910–930 ₹ and support around 880–890 ₹.
📊 Moving Averages: Current price (899 ₹) is slightly above both DMAs, indicating mild short-term strength but weak medium-term conviction.
📉 RSI: At 59.0, RSI is moderately strong, suggesting momentum but not yet overbought.
📊 MACD: Positive at 30.0, confirming bullish crossover and short-term upside potential.
📉 Bollinger Bands: Price near mid-to-upper band, reflecting momentum but also risk of pullback.
📊 Volume Trends: Current volume (1.55L) below 1-week average (2.26L), showing reduced participation and lack of strong accumulation.
🎯 Momentum Signals: Neutral to mildly bullish. MACD supports upside, but weak volume and fundamentals limit conviction.
💹 Entry Zone: 880–890 ₹ (support levels).
💹 Exit Zone: 910–930 ₹ (resistance levels).
📌 Trend Status: Consolidating with weak bias.
Positive
- Price trading above both 50 DMA and 200 DMA confirms short-term strength.
- MACD positive crossover supports momentum-driven trades.
- DII holdings increased slightly (+0.01%), showing domestic support.
- 52-week performance (+53.7%) highlights sector participation.
Limitation
- Extremely high P/E (3,929) compared to industry PE (18.5), indicating severe overvaluation.
- Weak ROE (1.61%) and ROCE (8.65%) highlight poor capital efficiency.
- Debt-to-equity ratio at 2.79 indicates high leverage risk.
- Volume below average, limiting breakout confirmation.
Company Negative News
- Quarterly PAT dropped sharply (-67.9 Cr. vs 20.9 Cr.).
- EPS of 0.43 ₹ is very low relative to valuation.
- High debt levels raise financial risk concerns.
Company Positive News
- DII holdings increased marginally (+0.01%).
- MACD and RSI show short-term momentum support.
Industry
- Industry PE at 18.5 is far lower than FACT’s P/E, suggesting extreme overvaluation.
- Sector remains cyclical, influenced by fertilizer demand and government policies.
Conclusion
⚖️ FACT is consolidating with weak fundamentals and stretched valuations. Entry near 880–890 ₹ offers limited upside toward 910–930 ₹. Long-term investors should remain cautious due to poor profitability, high debt, and unsustainable valuation, while short-term traders may attempt momentum trades with strict stop-loss discipline.