FORCEMOT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | FORCEMOT | Market Cap | 26,168 Cr. | Current Price | 19,858 ₹ | High / Low | 26,486 ₹ |
| Stock P/E | 24.8 | Book Value | 3,236 ₹ | Dividend Yield | 0.20 % | ROCE | 35.4 % |
| ROE | 28.7 % | Face Value | 10.0 ₹ | DMA 50 | 20,576 ₹ | DMA 200 | 18,899 ₹ |
| Chg in FII Hold | 0.47 % | Chg in DII Hold | -0.05 % | PAT Qtr | 274 Cr. | PAT Prev Qtr | 252 Cr. |
| RSI | 46.7 | MACD | -330 | Volume | 66,248 | Avg Vol 1Wk | 1,21,208 |
| Low price | 11,020 ₹ | High price | 26,486 ₹ | PEG Ratio | 0.13 | Debt to equity | 0.00 |
| 52w Index | 57.1 % | Qtr Profit Var | 57.4 % | EPS | 919 ₹ | Industry PE | 28.6 |
Chart & Trend Analysis:
FORCEMOT is trading at ₹19,858, below its 50 DMA (₹20,576) but above its 200 DMA (₹18,899), reflecting short-term weakness but medium-term support. RSI at 46.7 indicates neutral-to-bearish momentum, while MACD at -330 shows strong bearish crossover. Bollinger Bands are moderately wide, suggesting consolidation with downside risk. Current volume (66K) is lower than the weekly average (1.21L), showing reduced participation.
Momentum Signals:
- RSI below 50 signals weak momentum.
- MACD strongly negative, confirming bearish bias.
- Resistance zones: ₹20,200–20,600 (near-term, 50 DMA), ₹21,000 (psychological).
- Support zones: ₹19,500 immediate, deeper support at ₹18,900 (200 DMA).
- Trend status: Consolidating with bearish bias; reversal possible only if price sustains above 20,600.
Entry Zone: ₹19,500–19,800 (risk-managed accumulation)
Exit Zone: ₹20,200–21,000 (profit booking zone)
Stop-Loss: Below ₹18,900
Positive
- Strong ROCE (35.4%) and ROE (28.7%) highlight excellent capital efficiency.
- Debt-free balance sheet ensures financial stability.
- EPS at ₹919 supports valuation strength.
- Quarterly PAT growth (+57.4%) shows operational improvement.
Limitation
- Stock trading below 50 DMA indicates short-term weakness.
- Volume participation below average, limiting momentum confirmation.
- MACD strongly negative, signaling bearish trend continuation.
Company Negative News
- DII holdings declined (-0.05%), showing reduced domestic institutional support.
Company Positive News
- FII holdings increased (+0.47%), reflecting foreign investor confidence.
- Quarterly PAT improved to ₹274 Cr from ₹252 Cr.
Industry
- Industry PE at 28.6 is slightly higher than FORCEMOT’s P/E (24.8), suggesting fair valuation.
- Automobile and commercial vehicle sector supported by infrastructure and industrial demand.
Conclusion
FORCEMOT is consolidating with bearish bias, trading below 50 DMA but above 200 DMA. Entry near ₹19,500–19,800 offers cautious accumulation, with exits around ₹20,200–21,000. Strong fundamentals (high ROE, ROCE, debt-free status) support long-term confidence, but short-term weakness and bearish MACD require disciplined monitoring.
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