GLENMARK - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.8

📊 Chart Patterns & Trend: GLENMARK is trading above both its 50 DMA (1,925 ₹) and 200 DMA (1,804 ₹), showing short-term strength. Support lies around 1,950–1,970 ₹, while resistance is seen near 2,050–2,080 ₹. The stock is trending upward with bullish bias supported by positive MACD.

📈 Moving Averages: Current price (1,991 ₹) is above both 50 DMA and 200 DMA, indicating bullish sentiment in the short-to-medium term.

📉 RSI: At 55.4, RSI suggests neutral-to-positive momentum, not overbought or oversold.

📈 MACD: Positive (19.6) reflects 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 (3.65 lakh) is nearly aligned with the 1-week average (3.68 lakh), showing stable participation.

🎯 Entry Zone: 1,950–1,970 ₹ (near support and DMA levels)

🎯 Exit Zone: 2,050–2,080 ₹ (near resistance and upper band)

Positive

• Stock trading above both 50 DMA and 200 DMA shows technical strength.
• FII holdings increased by 0.11%, showing foreign investor confidence.
• DII holdings increased by 0.97%, reflecting strong domestic institutional support.
• 52-week performance index at 70.8% shows resilience compared to broader market.

Limitation

• P/E ratio (38.2) is higher than industry average (30.6), suggesting overvaluation.
• ROCE (9.72%) and ROE (7.35%) are modest, showing average capital efficiency.
• Dividend yield at 0.13% provides minimal income appeal.
• PEG ratio (19.1) indicates valuation is stretched relative to growth.

Company Negative News

• Quarterly PAT dropped sharply from 596 Cr. to 193 Cr., reflecting earnings pressure.
• Quarterly profit variation at -67.6% highlights significant decline in profitability.

Company Positive News

• Strong institutional support with both FII and DII inflows.
• EPS at 5.41 ₹ reflects profitability despite recent earnings decline.

Industry

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

Conclusion

⚖️ GLENMARK is in a trending phase with bullish bias supported by positive MACD and strong institutional inflows. Entry near 1,950–1,970 ₹ offers favorable risk-reward, while exits around 2,050–2,080 ₹ are optimal. Watch for volume expansion to confirm breakout momentum. Despite strong technicals, high valuation and weak quarterly earnings remain key concerns.