FORTIS - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.2

📊 Chart Patterns & Trend: FORTIS is trading below its 50 DMA (930 ₹) but above the 200 DMA (850 ₹). Support lies around 880–890 ₹, while resistance is seen near 920–930 ₹. The stock is in a bearish reversal phase with weak momentum signals.

📈 Moving Averages: Current price (891 ₹) is below the 50 DMA, showing short-term weakness, but still above the 200 DMA, indicating long-term support.

📉 RSI: At 33.5, RSI suggests oversold conditions, signaling potential accumulation zones.

📉 MACD: Negative (-27.2) reflects strong bearish momentum, suggesting caution until a crossover occurs.

📊 Bollinger Bands: Price is near the lower band, implying limited downside and potential rebound if demand picks up.

📊 Volume Trends: Current volume (18.7 lakh) is above the 1-week average (16.3 lakh), showing increased participation despite weakness.

🎯 Entry Zone: 880–890 ₹ (near support and oversold RSI)

🎯 Exit Zone: 920–930 ₹ (near resistance and upper band)

Positive

• Quarterly PAT surged from 38 Cr. to 105 Cr., showing strong earnings growth.
• EPS at 2.31 ₹ reflects improved profitability compared to previous quarters.
• FII holdings increased by 0.72%, showing foreign investor confidence.

Limitation

• Extremely high P/E (364) compared to industry average (51.8) suggests severe overvaluation.
• Low ROCE (3.27%) and ROE (1.41%) highlight weak capital efficiency.
• Dividend yield at 0.12% provides minimal income appeal.
• PEG ratio (2.31) indicates valuation is stretched relative to growth.

Company Negative News

• DII holdings decreased by 0.65%, showing reduced domestic institutional confidence.
• Stock trading below 50 DMA indicates short-term weakness.

Company Positive News

• Quarterly profit variation at 9.77% highlights steady earnings momentum.
• Strong FII inflows reflect foreign investor confidence.
• 52-week performance index at 63.3% shows resilience compared to broader market.

Industry

• Industry P/E at 51.8 indicates sector is moderately valued compared to FORTIS’s extreme valuation.
• Healthcare sector demand expected to remain strong with rising medical services and hospital expansion.

Conclusion

⚖️ FORTIS is in a bearish reversal phase with oversold RSI and weak momentum. Entry near 880–890 ₹ offers favorable risk-reward, while exits around 920–930 ₹ are optimal. Watch for MACD crossover and sustained volume strength to confirm a rebound from current weakness. High valuation and weak efficiency metrics remain key concerns despite earnings growth.