GLAXO - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.9

📊 Chart Patterns & Trend: GLAXO is trading below both its 50 DMA (2,605 ₹) and 200 DMA (2,715 ₹), showing short-term weakness. Support lies around 2,500–2,520 ₹, while resistance is seen near 2,600–2,620 ₹. The stock is consolidating with mild bullish bias supported by positive MACD.

📈 Moving Averages: Current price (2,540 ₹) is below both 50 DMA and 200 DMA, indicating medium-term weakness despite near-term stability.

📉 RSI: At 47.8, RSI suggests neutral momentum, neither oversold nor overbought.

📈 MACD: Positive (1.22) reflects mild bullish momentum, supporting potential upward movement.

📊 Bollinger Bands: Price is near the mid-band, indicating consolidation with scope for breakout if volume rises.

📊 Volume Trends: Current volume (70,380) is slightly below the 1-week average (74,193), showing reduced participation and lack of strong momentum.

🎯 Entry Zone: 2,500–2,520 ₹ (near support and consolidation base)

🎯 Exit Zone: 2,600–2,620 ₹ (near resistance and upper band)

Positive

• Strong ROCE (62.6%) and ROE (46.4%) highlight excellent capital efficiency.
• Dividend yield at 1.68% provides income appeal.
• EPS at 56.0 ₹ reflects strong profitability.
• Quarterly PAT growth from 205 Cr. to 253 Cr. shows earnings momentum.

Limitation

• P/E ratio (45.4) is higher than industry average (30.6), suggesting overvaluation.
• PEG ratio (-2.29) indicates poor alignment between growth and valuation.
• Stock trading below both 50 DMA and 200 DMA shows technical weakness.

Company Negative News

• FII holdings decreased by 0.10%, showing reduced foreign investor confidence.
• Stock underperforming relative to its 52-week high of 3,516 ₹.

Company Positive News

• DII holdings increased slightly (+0.04%), reflecting domestic institutional support.
• Quarterly profit variation at 3.15% highlights steady earnings growth.
• 52-week performance index at 38.8% shows resilience compared to broader market.

Industry

• Industry P/E at 30.6 indicates sector is moderately valued compared to GLAXO’s higher valuation.
• Pharmaceutical sector demand expected to remain strong with healthcare expansion and product innovation.

Conclusion

⚖️ GLAXO is in a consolidation phase with mild bullish bias supported by positive MACD. Entry near 2,500–2,520 ₹ offers favorable risk-reward, while exits around 2,600–2,620 ₹ are optimal. Watch for volume recovery and sustained MACD strength to confirm breakout momentum. Strong fundamentals provide stability despite valuation concerns.