FACT - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.2

📉 FACT is showing signs of short-term weakness with bearish momentum indicators. Entry near 880–900 ₹ may offer a better setup, while resistance lies around 1,050–1,100 ₹.

📈 Technical Analysis

• 📉 Chart Pattern: FACT is reversing from its recent highs, forming lower highs and testing support near 900 ₹.
• 📉 Moving Averages: Price is slightly below the 50-DMA (923 ₹) and just above the 200-DMA (903 ₹), indicating short-term weakness but long-term support.
• 📉 RSI (47.4): Neutral zone, leaning bearish — suggests lack of strong momentum.
• 📉 MACD (-10.5): Deep in negative territory, confirming bearish crossover and downward momentum.
• 📈 Bollinger Bands: Price trading above the middle band, but volatility is high — potential for sharp moves

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• 📈 Volume Trend: Current volume (4.6L) is above 1-week average (3.3L), showing increased activity — possibly profit booking or panic selling.

📍 Entry & Exit Zones

• ✅ Entry Zone: 880 ₹ – 900 ₹ (near 200-DMA and psychological support)
• 🚪 Exit Zone: 1,050 ₹ – 1,100 ₹ (resistance from previous highs)

📊 Trend Status

• 📉 Current Trend: Reversing from uptrend to short-term bearish
• ⚠️ Bias: Bearish unless MACD flattens and RSI crosses 50

✅ Positive

• Quarterly PAT jumped from 4.28 Cr. to 20.9 Cr. — an 86.4% increase.
• Price still above 200-DMA, indicating long-term support remains intact.
• Volume spike may indicate accumulation near support levels.

⚠️ Limitation

• Extremely high P/E (647) and negative PEG (-10.3) suggest severe overvaluation.
• Weak ROE (1.61%) and ROCE (8.65%) reflect poor capital efficiency.
• MACD and RSI both signal bearish momentum.

📉 Company Negative News

• DII holding dropped by 8.56%, indicating reduced domestic institutional confidence.

📈 Company Positive News

• FII holding increased slightly (0.01%), and PAT growth may support sentiment if sustained.

🏭 Industry

• Chemicals and fertilizers sector remains cyclical with moderate growth outlook.
• FACT trades at a massive premium to industry PE (22.7), raising valuation concerns.

🧾 Conclusion

• FACT is reversing from recent highs with bearish technical indicators and valuation risks.
• Short-term traders may consider entries near 880 ₹ and exits near 1,100 ₹.
• Long-term investors should monitor earnings consistency and valuation compression before adding exposure.

Sources

tick.dailybulls.in

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Chartink

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StockManiacs