GLAXO - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | GLAXO | Market Cap | 38,968 Cr. | Current Price | 2,301 ₹ | High / Low | 3,516 ₹ |
| Stock P/E | 38.6 | Book Value | 132 ₹ | Dividend Yield | 2.47 % | ROCE | 65.0 % |
| ROE | 48.2 % | Face Value | 10.0 ₹ | DMA 50 | 2,400 ₹ | DMA 200 | 2,526 ₹ |
| Chg in FII Hold | -0.01 % | Chg in DII Hold | -0.02 % | PAT Qtr | 275 Cr. | PAT Prev Qtr | 277 Cr. |
| RSI | 37.1 | MACD | -30.2 | Volume | 1,90,246 | Avg Vol 1Wk | 1,56,550 |
| Low price | 2,218 ₹ | High price | 3,516 ₹ | PEG Ratio | 1.95 | Debt to equity | 0.01 |
| 52w Index | 6.43 % | Qtr Profit Var | 5.69 % | EPS | 59.7 ₹ | Industry PE | 31.6 |
📊 GLAXO is trading at 2,301 ₹, below both its 50 DMA (2,400 ₹) and 200 DMA (2,526 ₹), reflecting weakness in trend structure. RSI at 37.1 indicates oversold territory, suggesting potential for a short-term bounce. MACD at -30.2 is strongly negative, confirming bearish undertones. Bollinger Bands show price near the lower band, highlighting downside pressure. Current volume (1,90,246) is slightly above the 1-week average (1,56,550), showing increased selling activity.
- 💰 Optimal Buy Price: 2,250 – 2,280 ₹ (near support zone)
- 📈 Profit-Taking Exit Levels: 2,400 ₹ (first resistance), 2,500 ₹ (trendline resistance)
- 📉 Stop-Loss / Loss Protection: 2,200 ₹ (below support)
- ⏱️ Trend Status: Weak downtrend; consolidating near support with reversal possible if RSI-driven bounce sustains above 2,400 ₹.
Positive
✅ Strong ROCE (65%) and ROE (48.2%) highlight excellent profitability.
✅ Dividend yield of 2.47% provides steady returns.
✅ EPS at 59.7 ₹ reflects solid earnings power.
✅ Debt-to-equity at 0.01 indicates minimal leverage.
Limitation
⚠️ Price below both 50 DMA and 200 DMA signals technical weakness.
⚠️ RSI oversold but MACD strongly negative, limiting immediate recovery.
⚠️ PEG ratio of 1.95 suggests valuation stretched relative to growth.
⚠️ Institutional holdings declined (FII -0.01%, DII -0.02%), showing reduced confidence.
Company Negative News
🚫 Weak technical indicators with MACD negative and price below long-term averages.
🚫 Institutional selling pressure adds downside risk.
Company Positive News
🌟 PAT remains stable (275 Cr. vs 277 Cr.), showing resilience.
🌟 Strong profitability metrics (ROCE, ROE) remain industry-leading.
🌟 Dividend yield supports investor returns.
Industry
🏭 Industry P/E at 31.6 is lower than GLAXO’s 38.6, showing overvaluation relative to peers.
🏭 Pharma sector outlook remains positive with steady demand and export opportunities.
Conclusion
📌 GLAXO shows strong fundamentals but weak technical momentum. The stock is consolidating below its 200 DMA with bearish undertones. Best strategy is cautious accumulation near 2,250 – 2,280 ₹ with profit booking around 2,400 – 2,500 ₹, maintaining a strict stop-loss near 2,200 ₹.
Would you like me to extend this into a peer benchmarking overlay with pharma leaders like Sun Pharma and Cipla, or keep the focus strictly on this standalone technical view?