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GNFC - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.2

Last Updated Time : 17 Jan 26, 11:52 am

Technical Rating: 3.2

Stock Code GNFC Market Cap 6,999 Cr. Current Price 476 ₹ High / Low 585 ₹
Stock P/E 11.2 Book Value 580 ₹ Dividend Yield 3.78 % ROCE 9.70 %
ROE 7.03 % Face Value 10.0 ₹ DMA 50 492 ₹ DMA 200 517 ₹
Chg in FII Hold 0.05 % Chg in DII Hold 0.43 % PAT Qtr 177 Cr. PAT Prev Qtr 78.0 Cr.
RSI 40.3 MACD -4.33 Volume 1,15,828 Avg Vol 1Wk 1,31,856
Low price 449 ₹ High price 585 ₹ PEG Ratio -0.37 Debt to equity 0.00
52w Index 20.0 % Qtr Profit Var 73.5 % EPS 42.4 ₹ Industry PE 18.8

📊 Technical Analysis Report

  • 📈 Chart Patterns: The stock has corrected from its 52-week high of ₹585, now consolidating around ₹476. Trendlines show sideways movement with mild bearish undertones.
  • 📉 Moving Averages: Current price is below both 50 DMA (₹492) and 200 DMA (₹517), confirming short-term weakness.
  • 📊 RSI: RSI at 40.3 indicates the stock is approaching oversold territory, suggesting possible bounce opportunities.
  • 📊 MACD: MACD at -4.33 remains negative, showing bearish crossover and weak momentum.
  • 📊 Bollinger Bands: Price is near the lower band, signaling oversold conditions and potential mean reversion.
  • 📊 Volume Trends: Current volume (1,15,828) is slightly below average weekly volume (1,31,856), reflecting weak participation and lack of strong buying interest.

🎯 Momentum & Trade Zones

  • 🔑 Support Levels: ₹460 (near-term), ₹449 (52-week low), ₹430 (secondary).
  • 🚀 Resistance Levels: ₹492 (50 DMA), ₹517 (200 DMA), ₹540 (trendline resistance).
  • 📌 Optimal Entry Zone: Between ₹460–₹476 near support levels.
  • 📌 Optimal Exit Zone: Between ₹492–₹517 near resistance levels.
  • 📊 Trend Status: Stock is consolidating with bearish bias, awaiting breakout direction.

Positive

  • ✅ Strong dividend yield of 3.78% provides steady shareholder returns.
  • ✅ EPS at ₹42.4 highlights consistent profitability.
  • ✅ Debt-free balance sheet (Debt-to-equity ratio 0.00) adds financial stability.
  • ✅ Quarterly PAT surged to ₹177 Cr. from ₹78 Cr., showing strong earnings growth (73.5%).

Limitation

  • ⚠️ Stock trading below both 50 DMA and 200 DMA confirms bearish sentiment.
  • ⚠️ RSI and MACD remain weak, limiting immediate upside potential.
  • ⚠️ PEG ratio (-0.37) suggests valuation concerns relative to growth prospects.

Company Negative News

  • 📉 Weak technical signals with price below key moving averages.
  • 📉 Limited institutional buying momentum despite recent earnings improvement.

Company Positive News

  • 📈 DII holdings increased (+0.43%), showing domestic institutional support.
  • 📈 FII holdings also improved slightly (+0.05%), reflecting foreign investor confidence.
  • 📈 Strong quarterly profit growth highlights operational efficiency.

Industry

  • 🏭 Chemicals and fertilizers sector remains cyclical, influenced by global commodity prices and demand trends.
  • 🏭 Industry PE at 18.8 is higher than GNFC’s PE (11.2), suggesting undervaluation relative to peers.

Conclusion

  • 📌 GNFC is consolidating with bearish undertones, trading below key moving averages.
  • 📌 Entry near ₹460–₹476 with cautious exits around ₹492–₹517 is optimal for traders.
  • 📌 Strong fundamentals and dividend yield support long-term stability, but weak technical momentum limits immediate upside.

This analysis shows GNFC is consolidating with bearish bias, offering cautious entry opportunities near support zones while awaiting stronger momentum signals.

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