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FORTIS - Technical Analysis with Chart Patterns & Indicators

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Rating: 2.8

Last Updated Time : 04 May 26, 11:56 am

Technical Rating: 2.8

Stock Code FORTIS Market Cap 69,679 Cr. Current Price 923 ₹ High / Low 1,105 ₹
Stock P/E 400 Book Value 122 ₹ Dividend Yield 0.11 % ROCE 3.27 %
ROE 1.41 % Face Value 10.0 ₹ DMA 50 882 ₹ DMA 200 867 ₹
Chg in FII Hold -1.86 % Chg in DII Hold 2.02 % PAT Qtr 24.7 Cr. PAT Prev Qtr 105 Cr.
RSI 60.8 MACD 23.9 Volume 10,77,160 Avg Vol 1Wk 12,71,068
Low price 623 ₹ High price 1,105 ₹ PEG Ratio 2.54 Debt to equity 0.22
52w Index 62.2 % Qtr Profit Var -30.0 % EPS 2.16 ₹ Industry PE 47.1

📈 Chart Patterns: Price is trading above both 50 DMA (882 ₹) and 200 DMA (867 ₹), showing short-term strength. Trendlines suggest resistance near 940–960 ₹ and support around 910–915 ₹.

📊 Moving Averages: Current price (923 ₹) above both DMAs indicates bullish bias in the short term, though fundamentals remain weak.

📉 RSI: At 60.8, RSI is moderately strong, suggesting momentum but nearing overbought territory.

📊 MACD: Positive at 23.9, confirming bullish crossover and short-term upside potential.

📉 Bollinger Bands: Price near upper band, reflecting momentum but also risk of pullback.

📊 Volume Trends: Current volume (10.8L) below 1-week average (12.7L), showing reduced participation despite price strength.

🎯 Momentum Signals: Mildly bullish. MACD and moving averages confirm strength, but weak fundamentals and volume limit conviction.

💹 Entry Zone: 910–915 ₹ (support levels).

💹 Exit Zone: 940–960 ₹ (resistance levels).

📌 Trend Status: Consolidating with mild bullish bias.


Positive

  • Price trading above both 50 DMA and 200 DMA confirms short-term strength.
  • DII holdings increased (+2.02%), showing domestic institutional support.
  • Debt-to-equity ratio at 0.22 indicates manageable leverage.
  • MACD positive crossover supports momentum-driven trades.

Limitation

  • Extremely high P/E (400) compared to industry PE (47.1), indicating severe overvaluation.
  • Weak ROE (1.41%) and ROCE (3.27%) highlight poor capital efficiency.
  • EPS of 2.16 ₹ is very low relative to valuation.
  • Volume below average, limiting breakout confirmation.

Company Negative News

  • Quarterly PAT declined sharply (24.7 Cr. vs 105 Cr.).
  • FII holdings reduced (-1.86%), showing weaker foreign investor confidence.

Company Positive News

  • DII support indicates domestic institutional optimism.
  • Stock holding above support zones despite weak fundamentals shows resilience.

Industry

  • Industry PE at 47.1 is far lower than FORTIS’s P/E, suggesting extreme overvaluation.
  • Healthcare sector remains resilient but competitive, with stronger peers offering better fundamentals.

Conclusion

⚖️ FORTIS is consolidating with weak fundamentals and stretched valuations. Entry near 910–915 ₹ is viable only for short-term trades with strict stop-loss discipline. Exit opportunities lie around 940–960 ₹. Long-term investors should remain cautious until profitability stabilizes and valuation normalizes.

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