FORCEMOT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | FORCEMOT | Market Cap | 26,226 Cr. | Current Price | 19,904 ₹ | 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 | 21,325 ₹ | DMA 200 | 18,706 ₹ |
| Chg in FII Hold | 0.47 % | Chg in DII Hold | -0.05 % | PAT Qtr | 274 Cr. | PAT Prev Qtr | 252 Cr. |
| RSI | 40.9 | MACD | -307 | Volume | 2,79,496 | Avg Vol 1Wk | 1,81,347 |
| Low price | 8,892 ₹ | High price | 26,486 ₹ | PEG Ratio | 0.13 | Debt to equity | 0.00 |
| 52w Index | 62.6 % | Qtr Profit Var | 57.4 % | EPS | 919 ₹ | Industry PE | 27.3 |
📈 Chart Patterns: Price is trading below the 50 DMA (21,325 ₹) but above the 200 DMA (18,706 ₹), showing short-term weakness but medium-term support. Trendlines suggest resistance near 20,500–21,000 ₹ and support around 19,700–19,800 ₹.
📊 Moving Averages: Current price (19,904 ₹) below 50 DMA indicates short-term bearishness, but above 200 DMA reflects longer-term strength.
📉 RSI: At 40.9, RSI is weak, suggesting oversold conditions and limited momentum.
📊 MACD: Negative at -307, confirming bearish crossover and short-term weakness.
📉 Bollinger Bands: Price near lower band, indicating weakness but potential for rebound from oversold levels.
📊 Volume Trends: Current volume (2.79L) above 1-week average (1.81L), showing strong participation despite weakness.
🎯 Momentum Signals: Bearish in the short term. RSI and MACD confirm weakness, though volume suggests accumulation near support.
💹 Entry Zone: 19,700–19,800 ₹ (support levels).
💹 Exit Zone: 20,500–21,000 ₹ (resistance levels).
📌 Trend Status: Consolidating with bearish bias.
Positive
- Strong ROCE (35.4%) and ROE (28.7%) highlight excellent profitability.
- EPS of 919 ₹ supports strong earnings visibility.
- Debt-free balance sheet (Debt-to-equity ratio 0.00).
- Quarterly PAT growth (274 Cr. vs 252 Cr.) shows operational improvement.
- FII holdings increased (+0.47%), showing foreign investor confidence.
Limitation
- Price below 50 DMA indicates short-term weakness.
- Negative MACD (-307) confirms bearish momentum.
- Dividend yield at 0.20% is modest.
- Volume spike may reflect selling pressure rather than accumulation.
Company Negative News
- DII holdings reduced (-0.05%), showing weaker domestic support.
- Short-term technical weakness with RSI below 50 and MACD negative.
Company Positive News
- Quarterly PAT growth (+57.4%) highlights operational strength.
- FII support indicates foreign investor optimism.
- Strong fundamentals with high ROE and ROCE.
Industry
- Industry PE at 27.3 is slightly higher than FORCEMOT’s P/E (24.8), suggesting fair valuation.
- Automobile sector supported by demand recovery and export growth.
Conclusion
⚖️ FORCEMOT is consolidating with bearish bias in the short term, reflected in negative MACD and weak RSI. Entry near 19,700–19,800 ₹ offers a favorable setup, with exits around 20,500–21,000 ₹. Strong fundamentals (ROE, ROCE, EPS, debt-free status) support long-term holding, but traders should exercise caution until price regains strength above the 50 DMA.