FACT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.6
| Stock Code | FACT | Market Cap | 59,498 Cr. | Current Price | 920 ₹ | High / Low | 1,112 ₹ |
| Stock P/E | 4,017 | Book Value | 21.2 ₹ | Dividend Yield | 0.02 % | ROCE | 8.65 % |
| ROE | 1.61 % | Face Value | 10.0 ₹ | DMA 50 | 864 ₹ | DMA 200 | 858 ₹ |
| Chg in FII Hold | 0.00 % | Chg in DII Hold | 0.01 % | PAT Qtr | -67.9 Cr. | PAT Prev Qtr | 20.9 Cr. |
| RSI | 63.8 | MACD | 8.02 | Volume | 8,14,937 | Avg Vol 1Wk | 3,84,681 |
| Low price | 652 ₹ | High price | 1,112 ₹ | PEG Ratio | -63.7 | Debt to equity | 2.79 |
| 52w Index | 58.3 % | Qtr Profit Var | -949 % | EPS | 0.43 ₹ | Industry PE | 16.3 |
Chart & Trend Analysis:
FACT is trading at ₹920, above its 50 DMA (₹864) and 200 DMA (₹858), showing short-term bullish support. RSI at 63.8 indicates strong momentum but nearing overbought territory. MACD at 8.02 confirms positive crossover. Bollinger Bands are widening, reflecting volatility expansion. Current volume (8.14L) is higher than the weekly average (3.84L), showing strong participation. However, fundamentals remain weak, limiting sustainability of the rally.
Momentum Signals:
- RSI above 60 signals bullish continuation but risk of correction.
- MACD positive, confirming momentum strength.
- Resistance zones: ₹950–970 (near-term), ₹1,100–1,112 (major).
- Support zones: ₹900 immediate, deeper support at ₹864 (50 DMA).
- Trend status: Short-term uptrend, but medium-term consolidation likely due to weak fundamentals.
Entry Zone: ₹900–910 (risk-managed accumulation)
Exit Zone: ₹950–1,100 (profit booking zone)
Stop-Loss: Below ₹864
Positive
- Price trading above both 50 DMA and 200 DMA confirms bullish technicals.
- Strong volume surge indicates active participation.
- DII holdings increased slightly (+0.01%), showing domestic support.
Limitation
- Extremely high P/E (4,017) compared to industry average (16.3), indicating severe overvaluation.
- Weak ROE (1.61%) and ROCE (8.65%) highlight poor capital efficiency.
- Debt-to-equity ratio at 2.79 adds financial risk.
Company Negative News
- Quarterly PAT declined sharply (-₹67.9 Cr vs ₹20.9 Cr), showing severe earnings pressure.
- EPS at ₹0.43 remains very low relative to valuation.
Company Positive News
- Price momentum supported by strong trading volumes.
- Stable institutional holding structure with no major exits.
Industry
- Industry PE at 16.3 is far lower than FACT’s P/E, suggesting extreme premium valuation.
- Chemicals and fertilizers sector remains cyclical, dependent on government policies and demand cycles.
Conclusion
FACT is in a short-term uptrend with strong technical momentum, but fundamentals remain weak with severe overvaluation and declining profits. Entry near ₹900–910 offers limited upside, with exits around ₹950–1,100. Strict stop-loss discipline below ₹864 is essential. Suitable only for short-term momentum trades; long-term investors should remain cautious until earnings stabilize.
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