GODREJCP - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.1

📊 Chart Patterns: GODREJCP is trading slightly above its 50 DMA (1,152 ₹) and near its 200 DMA (1,184 ₹), showing strong support around current levels. The price action suggests an upward bias with resistance near recent highs (1,309 ₹).

📈 Moving Averages:

- 50 DMA: 1,152 ₹ (support)

- 200 DMA: 1,184 ₹ (support zone)

The stock is consolidating above both averages, indicating bullish undertone.

📉 RSI: 65.2 → Approaching overbought territory, suggesting caution but still strong momentum.

📈 MACD: 9.48 → Positive crossover, confirming bullish momentum.

📊 Bollinger Bands: Price near upper band, indicating strong buying pressure but risk of short-term pullback.

📊 Volume Trends: Current volume (5.5 lakh) is lower than 1-week average (11.7 lakh), showing reduced participation despite bullish signals.

🎯 Momentum Signals:

- Short-term bias: Bullish with caution due to overbought RSI

- Entry Zone: 1,160–1,180 ₹ (near DMA support)

- Exit Zone: 1,300–1,310 ₹ (recent highs/resistance)

- Breakout potential above 1,310 ₹ could target 1,350–1,370 ₹.

📌 Trend Status: Trending upward with consolidation near support levels. A breakout above 1,310 ₹ would confirm continuation of uptrend.

Positive

• Strong ROCE (19.3%) and ROE (14.9%) indicate efficient capital usage.
• Dividend yield of 1.27% adds shareholder value.
• Stock trading above both 50 DMA and 200 DMA supports bullish structure.
• DII holdings increased (+1.18%), showing domestic institutional confidence.

Limitation

• High P/E (92.8) compared to industry PE (49.7), suggesting overvaluation.
• Quarterly profit variation (-9.25%) indicates earnings pressure.
• FII holdings decreased (-1.12%), showing reduced foreign investor interest.
• PEG ratio (-43.0) highlights valuation concerns relative to growth.

Company Negative News

• Recent quarterly profit decline (-9.25%) raises concerns on earnings momentum.

Company Positive News

• Stable PAT (356 Cr vs 355 Cr) despite sector challenges.
• DII inflows (+1.18%) reflect strong domestic support.

Industry

• Industry PE: 49.7, significantly lower than GODREJCP’s PE of 92.8, suggesting premium valuation.
• Consumer products sector remains resilient with steady demand drivers.

Conclusion

⚖️ GODREJCP is trending upward with bullish signals supported by MACD and DMA levels. Entry near 1,160–1,180 ₹ offers accumulation opportunity, while resistance lies at 1,300–1,310 ₹. A breakout above 1,310 ₹ could extend momentum towards 1,350–1,370 ₹. Investors should be cautious of high valuations, while traders may ride the trend with tight stop-losses near 1,150 ₹.