⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
FORCEMOT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | FORCEMOT | Market Cap | 25,318 Cr. | Current Price | 19,214 ₹ | High / Low | 22,000 ₹ |
| Stock P/E | 31.0 | Book Value | 2,720 ₹ | Dividend Yield | 0.21 % | ROCE | 29.3 % |
| ROE | 20.2 % | Face Value | 10.0 ₹ | DMA 50 | 18,961 ₹ | DMA 200 | 16,131 ₹ |
| Chg in FII Hold | 0.19 % | Chg in DII Hold | 0.32 % | PAT Qtr | 350 Cr. | PAT Prev Qtr | 185 Cr. |
| RSI | 45.6 | MACD | 1.85 | Volume | 34,364 | Avg Vol 1Wk | 75,938 |
| Low price | 6,200 ₹ | High price | 22,000 ₹ | PEG Ratio | 0.28 | Debt to equity | 0.00 |
| 52w Index | 82.4 % | Qtr Profit Var | 148 % | EPS | 815 ₹ | Industry PE | 30.8 |
📈 Technical Analysis
- Chart Patterns: Stock corrected from 22,000 ₹ highs and is consolidating near 19,214 ₹, showing resilience after a strong rally.
- Moving Averages: Current price (19,214 ₹) is above both 50 DMA (18,961 ₹) and 200 DMA (16,131 ₹), confirming bullish trend continuation.
- RSI: At 45.6, the stock is neutral, neither oversold nor overbought.
- MACD: Positive (1.85), indicating bullish momentum persists.
- Bollinger Bands: Price is near the mid-band, suggesting consolidation with potential for upward breakout.
- Volume Trends: Current volume (34,364) is lower than 1-week average (75,938), showing reduced participation in recent moves.
📊 Momentum & Signals
- Short-Term Momentum: Neutral to bullish, supported by positive MACD and price above moving averages.
- Support Zones: 18,900 ₹ (near-term), 18,000 ₹ (major support).
- Resistance Zones: 20,000 ₹ (psychological resistance), 22,000 ₹ (recent high).
- Entry Zone: 18,900–19,200 ₹ on dips.
- Exit Zone: 20,000–22,000 ₹ on strength; strict stop-loss below 18,900 ₹.
- Trend Status: Stock is trending upward with consolidation near highs.
✅ Positive
- Quarterly PAT improved significantly (350 Cr. vs 185 Cr.), showing strong earnings growth.
- Strong ROCE (29.3 %) and ROE (20.2 %) highlight excellent capital efficiency.
- EPS at 815 ₹ supports robust earnings visibility.
- DII holdings increased (+0.32 %) and FII holdings increased (+0.19 %), showing institutional confidence.
- PEG ratio at 0.28 suggests attractive valuation relative to growth.
- Debt-to-equity ratio at 0.00 indicates excellent financial stability.
⚠️ Limitation
- Dividend yield at 0.21 % offers minimal income support.
- Current price below recent high (22,000 ₹) indicates resistance pressure.
- Volume participation has declined compared to weekly averages, signaling caution.
📉 Company Negative News
- Stock faces resistance near 22,000 ₹, limiting immediate upside.
- Low dividend yield may not attract income-focused investors.
📈 Company Positive News
- Quarterly profit variance (+148 %) highlights strong operational improvement.
- Institutional support from both FII and DII increased, boosting confidence.
- Strong fundamentals with high ROCE, ROE, and zero debt position the company well.
🏭 Industry
- Industry PE at 30.8 is slightly lower than company PE (31.0), suggesting FORCEMOT is fairly valued relative to peers.
- Automobile and commercial vehicle sector outlook remains positive with demand recovery and infrastructure growth.
🔎 Conclusion
- FORCEMOT is in a bullish trend with consolidation near highs, supported by strong fundamentals and positive MACD.
- Short-term traders may consider entry near 18,900–19,200 ₹ with exit around 20,000–22,000 ₹.
- Long-term investors may hold due to strong ROCE/ROE, zero debt, and sector growth potential, though low dividend yield and reduced volume participation warrant caution.