FLUOROCHEM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.0
| Stock Code | FLUOROCHEM | Market Cap | 32,590 Cr. | Current Price | 2,970 ₹ | High / Low | 4,098 ₹ |
| Stock P/E | 46.6 | Book Value | 620 ₹ | Dividend Yield | 0.10 % | ROCE | 11.0 % |
| ROE | 9.28 % | Face Value | 1.00 ₹ | DMA 50 | 3,398 ₹ | DMA 200 | 3,567 ₹ |
| Chg in FII Hold | -0.05 % | Chg in DII Hold | 0.08 % | PAT Qtr | 195 Cr. | PAT Prev Qtr | 185 Cr. |
| RSI | 23.5 | MACD | -143 | Volume | 20,457 | Avg Vol 1Wk | 87,402 |
| Low price | 2,917 ₹ | High price | 4,098 ₹ | PEG Ratio | -5.28 | Debt to equity | 0.22 |
| 52w Index | 4.52 % | Qtr Profit Var | 35.4 % | EPS | 63.7 ₹ | Industry PE | 26.3 |
📈 Chart & Trend Analysis: FLUOROCHEM is trading at ₹2,970, well below its 50 DMA (₹3,398) and 200 DMA (₹3,567), indicating strong short-term and medium-term weakness. RSI at 23.5 suggests oversold conditions, while MACD at -143 confirms heavy bearish momentum. Bollinger Bands show price near the lower band, reflecting selling pressure and potential for a technical rebound if support holds.
📊 Volume Trends: Current volume (20k) is significantly lower than the 1-week average (87k), suggesting weak participation and lack of momentum for a breakout.
🎯 Entry Zone: ₹2,900 – ₹2,950 (support near recent lows)
🚪 Exit Zone: ₹3,300 – ₹3,350 (resistance near 50 DMA and upper consolidation zone)
🔎 Trend Status: Reversing with bearish bias — price is under heavy pressure below moving averages, with oversold RSI hinting at possible short-term recovery, but trend remains weak.
Positive ✅
- EPS of ₹63.7 supports valuation strength.
- Quarterly PAT growth (₹195 Cr vs ₹185 Cr) shows earnings improvement.
- Book value of ₹620 provides strong asset backing.
- Debt-to-equity ratio of 0.22 indicates manageable leverage.
Limitation ⚠️
- Price trading well below both 50 DMA and 200 DMA indicates technical weakness.
- ROE (9.28%) and ROCE (11.0%) are modest compared to sector leaders.
- PEG ratio of -5.28 highlights weak growth-adjusted valuation.
- Dividend yield of 0.10% is negligible for income investors.
- Low trading volume reduces breakout potential.
Company Negative News 📉
- Decline in FII holdings (-0.05%) indicates reduced foreign investor confidence.
Company Positive News 📈
- Quarterly profit growth of 35.4% shows strong year-on-year performance.
- DII holdings increased (+0.08%), reflecting domestic institutional support.
Industry 🌐
- Industry P/E at 26.3 suggests sector trades at premium valuations.
- Chemicals sector benefits from global demand in specialty and fluorochemicals, though cyclical risks remain.
Conclusion 📝
FLUOROCHEM is reversing with bearish bias, trading well below its moving averages with oversold RSI and negative MACD confirming weakness. Entry near ₹2,900–₹2,950 offers margin of safety, while exits around ₹3,300–₹3,350 provide profit-taking opportunities. Fundamentally supported by EPS strength, book value, and profit growth, but weak ROE/ROCE, stretched valuations, and low volume participation limit upside. Traders may look for short-term rebound opportunities, while long-term investors should accumulate cautiously given sector demand.
Would you like me to extend this into a peer benchmarking overlay (comparing FLUOROCHEM against chemical peers like Navin Fluorine, SRF, and Gujarat Fluorochemicals) so you can evaluate relative strength and sector rotation opportunities?