GILLETTE - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.4

📊 Chart Patterns & Trend: GILLETTE is trading below both its 50 DMA (8,690 ₹) and 200 DMA (9,164 ₹), showing short-term weakness. Support lies around 7,900–8,000 ₹, while resistance is seen near 8,600–8,700 ₹. The stock is in a bearish reversal phase with oversold signals emerging.

📈 Moving Averages: Current price (7,980 ₹) is below both 50 DMA and 200 DMA, indicating bearish sentiment in the short-to-medium term.

📉 RSI: At 35.9, RSI suggests oversold conditions, signaling potential accumulation zones.

📉 MACD: Strongly negative (-190) reflects 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 (14,708) is below the 1-week average (19,374), showing weak participation and lack of strong momentum.

🎯 Entry Zone: 7,900–8,000 ₹ (near support and oversold RSI)

🎯 Exit Zone: 8,600–8,700 ₹ (near resistance and upper band)

Positive

• Strong ROCE (56.1%) and ROE (41.6%) highlight excellent capital efficiency.
• Debt-free balance sheet (Debt-to-equity ratio 0.00) ensures financial stability.
• Dividend yield at 1.40% provides income appeal.
• EPS at 176 ₹ reflects strong profitability.

Limitation

• P/E ratio (45.3) is slightly below industry average (49.7) but still high.
• PEG ratio (4.29) indicates valuation is stretched relative to growth.
• Weak trading volume reduces short-term momentum signals.
• Stock trading below both 50 DMA and 200 DMA shows technical weakness.

Company Negative News

• DII holdings decreased by 0.45%, showing reduced domestic institutional confidence.
• Quarterly PAT declined slightly from 146 Cr. to 144 Cr., reflecting earnings stagnation.

Company Positive News

• FII holdings increased by 0.19%, showing foreign investor confidence.
• Quarterly profit variation at 8.00% highlights modest earnings growth despite flat PAT.

Industry

• Industry P/E at 49.7 indicates sector is moderately valued compared to GILLETTE’s slightly lower valuation.
• Consumer goods sector demand expected to remain stable with strong brand presence and market share.

Conclusion

⚖️ GILLETTE is in a bearish reversal phase with oversold RSI and strong negative MACD. Entry near 7,900–8,000 ₹ offers favorable risk-reward, while exits around 8,600–8,700 ₹ are optimal. Watch for MACD crossover and volume recovery to confirm rebound signals. Strong fundamentals and debt-free balance sheet provide stability despite current technical weakness.