GNFC - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 19 Sept 25, 2:16 pm

Technical Rating: 3.5

Here’s a detailed technical analysis of Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC)

📈 Trend Analysis

Current Price (₹516) is below both 50-DMA (₹522) and 200-DMA (₹545) — indicating a bearish setup.

52-week Index at 26.5% shows the stock is trading in the lower quartile of its yearly range (₹449–₹702), suggesting weak recovery from recent lows.

Trend Status: Reversing downward, with no clear signs of stabilization.

🔍 Momentum Indicators

RSI (50.0): Exactly neutral — reflects indecision, with no clear momentum bias.

MACD (-4.85): Negative — confirms bearish divergence, though flattening may hint at a base forming.

Volume: At 5.12L, significantly above 1-week average (2.37L) — indicates renewed interest, possibly early accumulation.

📊 Chart Patterns & Moving Averages

Price is hovering below key moving averages, reinforcing bearish sentiment.

Support Levels

₹500 (psychological support)

₹480 (recent swing low)

₹449 (52-week low)

Resistance Levels

₹522 (50-DMA)

₹545 (200-DMA)

₹580–₹600 (gap zone and minor resistance)

📉 Bollinger Bands

Price is near the middle band, with bands narrowing — a sign of volatility contraction.

Watch for volume breakout and MACD crossover to confirm directional move.

🎯 Entry & Exit Zones

Action Price Zone (₹) Rationale

Entry 500–510 Near support zone and psychological level

Exit (Short-Term) 545–580 Resistance zone, potential reversal

Stop Loss 480 Below swing low and trendline

🧭 Summary

Trend: Reversing downward

Momentum: Weak, but stabilizing

Volatility: Low, with breakout potential

Strategy: Cautious accumulation near ₹500–₹510 with target ₹545–₹580. Watch for RSI climbing above 55 and MACD turning positive for confirmation.

Would you like to compare this setup with other fertilizer or chemical sector stocks for broader positioning?

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