⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
FACT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.9
| Stock Code | FACT | Market Cap | 50,808 Cr. | Current Price | 785 ₹ | High / Low | 1,112 ₹ |
| Stock P/E | 3,431 | Book Value | 21.2 ₹ | Dividend Yield | 0.03 % | ROCE | 8.65 % |
| ROE | 1.61 % | Face Value | 10.0 ₹ | DMA 50 | 853 ₹ | DMA 200 | 883 ₹ |
| Chg in FII Hold | 0.00 % | Chg in DII Hold | 0.00 % | PAT Qtr | -67.9 Cr. | PAT Prev Qtr | 20.9 Cr. |
| RSI | 36.2 | MACD | -20.8 | Volume | 2,21,837 | Avg Vol 1Wk | 2,86,774 |
| Low price | 565 ₹ | High price | 1,112 ₹ | PEG Ratio | -54.4 | Debt to equity | 2.79 |
| 52w Index | 40.3 % | Qtr Profit Var | -949 % | EPS | 0.43 ₹ | Industry PE | 18.5 |
📈 Technical Analysis
- Chart Patterns: Stock corrected sharply from 1,112 ₹ highs and is consolidating near 785 ₹, showing weakness with risk of further downside.
- Moving Averages: Current price (785 ₹) is below both 50 DMA (853 ₹) and 200 DMA (883 ₹), confirming bearish trend.
- RSI: At 36.2, the stock is close to oversold territory, suggesting potential for a technical bounce.
- MACD: Negative (-20.8), indicating bearish momentum persists.
- Bollinger Bands: Price is near the lower band, signaling oversold conditions but risk of breakdown.
- Volume Trends: Current volume (2,21,837) is lower than 1-week average (2,86,774), showing weak participation.
📊 Momentum & Signals
- Short-Term Momentum: Weak, with oversold RSI offering limited rebound potential.
- Support Zones: 770 ₹ (near-term), 720 ₹ (major support).
- Resistance Zones: 853 ₹ (50 DMA), 883 ₹ (200 DMA), 950 ₹ (trendline resistance).
- Entry Zone: 770–790 ₹ if RSI stabilizes.
- Exit Zone: 850–880 ₹ on rebound; strict stop-loss below 770 ₹.
- Trend Status: Stock is bearish and consolidating near support levels.
✅ Positive
- Strong market capitalization (50,808 Cr.) provides scale advantage.
- Stock has delivered 52-week performance (+40.3 %), showing investor interest despite volatility.
- Book value at 21.2 ₹ provides some asset backing.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA indicates weak technical strength.
- Extremely high P/E (3,431) compared to industry PE (18.5) suggests severe overvaluation.
- Low ROCE (8.65 %) and ROE (1.61 %) highlight poor capital efficiency.
- Dividend yield at 0.03 % offers negligible income support.
- Debt-to-equity ratio at 2.79 indicates high leverage.
📉 Company Negative News
- Quarterly PAT turned negative (-67.9 Cr. vs 20.9 Cr.), showing sharp earnings deterioration.
- Quarterly profit variance (-949 %) highlights severe operational weakness.
- No change in FII/DII holdings, indicating lack of fresh institutional interest.
📈 Company Positive News
- Stable institutional holding levels suggest no major sell-off pressure.
- Stock has delivered positive 52-week returns (+40.3 %), showing resilience despite weak fundamentals.
🏭 Industry
- Industry PE at 18.5 is far lower than company PE (3,431), suggesting FACT trades at an extreme premium.
- Chemicals and fertilizers sector outlook remains cyclical, dependent on demand and government policies.
🔎 Conclusion
- FACT is in a bearish consolidation phase after sharp correction, with oversold RSI but weak MACD.
- Short-term traders may consider entry near 770–790 ₹ with exit around 850–880 ₹.
- Long-term investors should be cautious due to extreme valuations, poor ROE/ROCE, high debt levels, and negative earnings trend, despite sector relevance and past 52-week performance.