GNFC - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.4

📊 Chart Patterns: GNFC is trading below both its 50 DMA (499 ₹) and 200 DMA (523 ₹), reflecting short-term weakness. The price is closer to its 52-week low (449 ₹), suggesting bearish sentiment but strong support nearby.

📈 Moving Averages:

- 50 DMA: 499 ₹ (resistance)

- 200 DMA: 523 ₹ (major resistance)

The stock remains under both averages, confirming a corrective phase.

📉 RSI: 40.7 → Neutral to bearish, approaching oversold territory, indicating weak momentum but potential for bounce.

📉 MACD: -2.27 → Bearish crossover, confirming short-term weakness.

📊 Bollinger Bands: Price near lower band, suggesting oversold conditions and possible mean reversion.

📊 Volume Trends: Current volume (1.18 lakh) is below 1-week average (1.46 lakh), showing reduced participation and lack of strong buying interest.

🎯 Momentum Signals:

- Short-term bias: Bearish with oversold signals

- Entry Zone: 460–480 ₹ (near support levels)

- Exit Zone: 500–520 ₹ (near 50 DMA resistance)

- Breakout potential above 525 ₹ could target 550–570 ₹.

📌 Trend Status: The stock is in a corrective phase with bearish undertone. Consolidation possible if support near 460 ₹ holds.

Positive

• Strong dividend yield (3.68%) provides shareholder value.
• EPS of 42.4 ₹ supports valuation strength.
• Quarterly PAT growth (177 Cr vs 78 Cr) shows earnings momentum (+73.5%).
• Debt-free balance sheet (Debt-to-equity ratio: 0.00) ensures financial stability.

Limitation

• Stock trading near 52-week low (449 ₹), reflecting weak sentiment.
• ROCE (9.70%) and ROE (7.03%) are modest compared to peers.
• PEG ratio (-0.38) highlights valuation concerns relative to growth.
• RSI and MACD indicate bearish momentum.

Company Negative News

• FII holdings decreased (-0.59%), showing reduced foreign investor confidence.

Company Positive News

• DII holdings increased (+0.20%), reflecting domestic institutional support.
• Quarterly profit growth highlights strong operational performance.

Industry

• Industry PE: 20.0, higher than GNFC’s PE of 11.5, suggesting undervaluation relative to peers.
• Chemicals sector remains cyclical, influenced by global demand and raw material costs.

Conclusion

⚖️ GNFC is in a bearish corrective phase with weak short-term signals but strong fundamentals. Entry near 460–480 ₹ offers accumulation opportunity, while resistance lies at 500–520 ₹. A breakout above 525 ₹ could extend momentum towards 550–570 ₹. Investors may accumulate cautiously for dividends and long-term value, while traders should wait for confirmation above resistance.