GLAXO - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.1

📉 GLAXO is reversing from its highs with bearish momentum signals. Entry near 2,600 ₹ and exit near 2,800 ₹ may suit short-term swing trades.

📈 Technical Analysis

• 📉 Chart Pattern: GLAXO is forming lower highs and lower lows, indicating a short-term downtrend.
• 📉 Moving Averages: Price is below both 50-DMA (2,766 ₹) and 200-DMA (2,782 ₹), confirming bearish sentiment.
• 📉 RSI (31.0): Approaching oversold territory — signals weak momentum and potential for technical bounce.
• 📉 MACD (-30.9): Deep negative crossover, reinforcing bearish momentum.
• 📉 Bollinger Bands: Price near lower band, suggesting oversold conditions but no clear reversal yet.
• 📈 Volume Trend: Current volume (94K) is slightly above 1-week average (87K), indicating mild selling pressure.

📍 Entry & Exit Zones

• ✅ Entry Zone: 2,600 ₹ – 2,650 ₹ (near psychological support and oversold RSI)
• 🚪 Exit Zone: 2,800 ₹ – 2,850 ₹ (resistance from moving averages)

📊 Trend Status

• 📉 Current Trend: Reversing from uptrend to short-term bearish
• ⚠️ Bias: Bearish unless RSI rebounds above 40 and MACD flattens

✅ Positive

• Strong ROCE (62.6%) and ROE (46.4%) reflect excellent capital efficiency.
• Zero debt-to-equity ratio indicates a clean balance sheet.
• EPS of 55.6 ₹ and consistent PAT support long-term fundamentals.

⚠️ Limitation

• Price trading below key moving averages — weak technical structure.
• MACD and RSI both signal bearish momentum.
• Negative PEG ratio (-2.44) suggests poor growth alignment with valuation.

📉 Company Negative News

• FII holding dropped by 0.10%, indicating reduced foreign investor confidence.
• Quarterly PAT declined from 260 Cr. to 205 Cr. — a 12.7% drop.

📈 Company Positive News

• DII holding increased slightly by 0.04%, showing domestic institutional support.
• Despite PAT drop, the company maintains strong return ratios and zero debt.

🏭 Industry

• Pharmaceuticals sector remains resilient with long-term growth potential driven by global demand.
• GLAXO trades above industry PE (48.4 vs 33.1), suggesting premium valuation.

🧾 Conclusion

• GLAXO is reversing with bearish technical indicators but strong fundamentals.
• Short-term traders may consider entries near 2,600 ₹ and exits near 2,850 ₹.
• Long-term investors should monitor earnings consistency and technical recovery before re-entry.

Sources

TSR

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