GODREJCP - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.1

📈 Technical Analysis

• 📉 Chart Pattern: GODREJCP is showing signs of a short-term reversal, forming lower highs and testing support near 1,170 ₹.
• 📉 Moving Averages: Price is below the 200-DMA (1,200 ₹) and hovering around the 50-DMA (1,168 ₹), indicating indecision with bearish bias.
• 📉 RSI (38.2): Near oversold territory, suggesting weak momentum and potential for a technical bounce.
• 📉 MACD (-19.3): Negative crossover, confirming bearish momentum.
• 📉 Bollinger Bands: Price near lower band, indicating oversold conditions but no clear reversal yet.
• 📉 Volume Trend: Current volume (13.25L) is below 1-week average (18.15L), showing declining participation.

📍 Entry & Exit Zones

• ✅ Entry Zone: 1,150 ₹ – 1,170 ₹ (near support and psychological level)
• 🚪 Exit Zone: 1,250 ₹ – 1,280 ₹ (resistance from prior swing highs and 200-DMA)

📊 Trend Status

• 📉 Current Trend: Reversing from uptrend to short-term bearish
• ⚠️ Bias: Bearish unless RSI rebounds above 45 and MACD flattens

✅ Positive

• Strong ROCE (19.3%) and ROE (14.9%) reflect efficient capital deployment.
• DII holding increased by 1.18%, indicating domestic institutional confidence.
• EPS of 12.7 ₹ and consistent PAT (356 Cr.) support long-term fundamentals.

⚠️ Limitation

• MACD and RSI both signal bearish momentum.
• Price trading below 200-DMA — short-term technical weakness.
• Extremely high P/E (92.3) and negative PEG (-42.7) suggest overvaluation and poor growth alignment.

📉 Company Negative News

• FII holding dropped by 1.12%, indicating reduced foreign investor confidence.
• Quarterly profit variation shows a decline of 9.25%.

📈 Company Positive News

• Stable earnings and increased DII interest support sentiment.

🏭 Industry

• FMCG sector remains resilient with strong brand loyalty and consistent demand.
• GODREJCP trades significantly above industry PE (92.3 vs 51.8), reflecting premium valuation and high investor expectations.

🧾 Conclusion

• GODREJCP is reversing with bearish technical indicators and valuation risks despite solid fundamentals.
• Short-term traders may consider entries near 1,160 ₹ and exits near 1,280 ₹.
• Long-term investors should monitor valuation and technical recovery before adding exposure.