GICRE - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.8

📊 Chart Patterns & Trend: GICRE is trading below both its 50 DMA (381 ₹) and 200 DMA (385 ₹), showing short-term weakness. Support lies around 355–365 ₹, while resistance is seen near 380–385 ₹. The stock is in a bearish reversal phase but oversold signals suggest potential rebound.

📈 Moving Averages: Current price (366 ₹) is below both 50 DMA and 200 DMA, indicating bearish sentiment in the short-to-medium term.

📉 RSI: At 33.4, RSI suggests oversold conditions, signaling potential accumulation zones.

📉 MACD: Negative (-3.30) reflects bearish momentum, though a crossover could indicate reversal if buying volume increases.

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

📊 Volume Trends: Current volume (5.02 lakh) is above the 1-week average (3.44 lakh), showing increased participation despite weakness.

🎯 Entry Zone: 355–365 ₹ (near support and oversold RSI)

🎯 Exit Zone: 380–385 ₹ (near resistance and upper band)

Positive

• Low P/E (7.69) compared to industry average (42.8) suggests undervaluation.
• Strong ROCE (16.0%) and ROE (12.2%) highlight efficient capital usage.
• Dividend yield at 2.76% provides attractive income appeal.
• Quarterly PAT growth from 1,752 Cr. to 2,867 Cr. shows strong earnings momentum.
• Debt-free balance sheet (Debt-to-equity ratio 0.00) ensures financial stability.

Limitation

• Stock trading below both 50 DMA and 200 DMA shows technical weakness.
• RSI and MACD indicate bearish momentum, limiting short-term upside.
• 52-week index at 11.9% shows weak relative performance compared to peers.

Company Negative News

• DII holdings decreased by 0.19%, showing reduced domestic institutional confidence.
• Stock underperforming relative to its 52-week high of 526 ₹.

Company Positive News

• Quarterly profit variation at 54.1% highlights strong earnings growth.
• EPS at 48.0 ₹ reflects solid profitability.
• Stable FII holdings indicate consistent foreign investor sentiment.

Industry

• Industry P/E at 42.8 indicates sector is moderately valued compared to GICRE’s low valuation.
• Insurance and reinsurance sector demand expected to remain strong with rising risk coverage needs.

Conclusion

⚖️ GICRE is in a bearish reversal phase with oversold RSI and weak momentum. Entry near 355–365 ₹ offers favorable risk-reward, while exits around 380–385 ₹ are optimal. Watch for MACD crossover and sustained volume strength to confirm rebound signals. Strong fundamentals and undervaluation provide stability despite current technical weakness.