GODREJAGRO - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.4

📊 Chart Patterns: GODREJAGRO is trading well below its 50 DMA (617 ₹) and 200 DMA (693 ₹), reflecting a bearish structure. The price is hovering near its 52-week low (560 ₹), suggesting strong support but weak momentum.

📈 Moving Averages:

- 50 DMA: 617 ₹ (resistance)

- 200 DMA: 693 ₹ (major resistance)

The stock remains under both averages, confirming a downtrend.

📉 RSI: 35.5 → Near oversold territory, indicating potential for a short-term bounce but still weak.

📉 MACD: -9.95 → Bearish crossover, confirming downward momentum.

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

📊 Volume Trends: Current volume (2.0 lakh) is higher than 1-week average (1.27 lakh), showing increased activity, possibly due to accumulation near support.

🎯 Momentum Signals:

- Short-term bias: Bearish but oversold

- Entry Zone: 560–575 ₹ (near strong support)

- Exit Zone: 615–625 ₹ (near 50 DMA resistance)

- Breakout potential above 625 ₹ could target 670–700 ₹.

📌 Trend Status: The stock is in a reversal watch zone — currently bearish but oversold, with potential for consolidation if support holds.

Positive

• Strong ROCE (24.4%) and ROE (20.9%) indicate efficient capital usage.
• Dividend yield of 1.91% provides steady shareholder returns.
• Quarterly PAT improved (177 Cr vs 169 Cr), showing earnings growth.
• EPS of 30.2 ₹ supports valuation strength.

Limitation

• Stock trading near 52-week low (560 ₹), reflecting weak sentiment.
• Debt-to-equity ratio at 0.57 is relatively high compared to peers.
• Technical indicators (RSI, MACD) show bearish momentum.

Company Negative News

• No major negative news reported, but technical weakness persists with FII holdings declining (-0.06%).

Company Positive News

• DII holdings increased (+0.21%), showing domestic institutional support.
• Quarterly profit growth (+34.2%) highlights operational efficiency.

Industry

• Industry PE: 18.9, in line with GODREJAGRO’s PE of 18.9, suggesting fair valuation.
• Agro and FMCG sector remains resilient with long-term demand drivers.

Conclusion

⚖️ GODREJAGRO is in a bearish phase but oversold, with support near 560 ₹. Entry around 560–575 ₹ offers accumulation opportunity, while resistance lies at 615–625 ₹. A breakout above 625 ₹ could trigger reversal towards 670–700 ₹. Investors may accumulate cautiously, while traders should wait for confirmation of reversal signals.