FLUOROCHEM - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.9

📊 Chart Patterns: FLUOROCHEM is trading slightly above its 50 DMA (3,533 ₹) but below its 200 DMA (3,625 ₹), reflecting a mixed structure. The price is consolidating between support and resistance zones, with potential for breakout if momentum strengthens.

📈 Moving Averages:

- 50 DMA: 3,533 ₹ (support)

- 200 DMA: 3,625 ₹ (resistance)

The stock is caught between these averages, indicating consolidation.

📉 RSI: 53.6 → Neutral, suggesting balanced momentum without overbought or oversold signals.

📉 MACD: -8.06 → Bearish crossover, showing short-term weakness despite overall stability.

📊 Bollinger Bands: Price near mid-band, indicating consolidation with limited volatility.

📊 Volume Trends: Current volume (37,581) is slightly below 1-week average (39,987), showing reduced participation and lack of strong momentum.

🎯 Momentum Signals:

- Short-term bias: Neutral to mildly bearish

- Entry Zone: 3,500–3,550 ₹ (near 50 DMA support)

- Exit Zone: 3,650–3,700 ₹ (near 200 DMA resistance)

- Breakout potential above 3,700 ₹ could target 3,850–3,950 ₹.

📌 Trend Status: Consolidating with mild bearish undertone. A decisive move above 3,625–3,650 ₹ is needed to confirm reversal into an uptrend.

Positive

• Quarterly PAT growth (195 Cr vs 185 Cr) shows earnings improvement.
• DII holdings increased (+1.26%), reflecting strong domestic institutional support.
• EPS of 63.7 ₹ supports valuation strength.
• Low debt-to-equity ratio (0.22) ensures financial stability.

Limitation

• Stock P/E (56.5) is significantly higher than industry PE (26.6), suggesting overvaluation.
• ROCE (11.0%) and ROE (9.28%) are modest, reflecting weak capital efficiency.
• PEG ratio (-6.41) highlights valuation concerns relative to growth.
• Volume participation is low, reducing breakout probability.

Company Negative News

• No major negative news reported, but technical weakness persists with MACD showing bearish crossover.

Company Positive News

• Quarterly profit growth (+35.4%) highlights strong operational performance.
• FII holdings increased slightly (+0.11%), showing foreign investor confidence.

Industry

• Industry PE: 26.6, far lower than FLUOROCHEM’s PE of 56.5, suggesting premium valuation.
• Chemicals sector remains cyclical but supported by demand in specialty chemicals and exports.

Conclusion

⚖️ FLUOROCHEM is consolidating between its 50 DMA and 200 DMA with neutral RSI and bearish MACD signals. Entry near 3,500–3,550 ₹ offers accumulation opportunity, while resistance lies at 3,650–3,700 ₹. A breakout above 3,700 ₹ could extend momentum towards 3,850–3,950 ₹. Investors should remain cautious due to high valuations, while traders may attempt short-term plays with stop-loss near 3,500 ₹.