GPIL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.8

📊 Chart Patterns: GPIL is trading below its 50 DMA (245 ₹) but above its 200 DMA (223 ₹), indicating short-term weakness but long-term support. The price action suggests consolidation after a recent pullback from highs.

📈 Moving Averages:

- 50 DMA: 245 ₹ (resistance zone)

- 200 DMA: 223 ₹ (support zone)

The stock is currently between these levels, showing sideways momentum.

📉 RSI: 45.0 → Neutral to slightly bearish, not oversold yet but closer to lower range.

📉 MACD: -4.17 → Bearish crossover, signaling short-term weakness.

📊 Bollinger Bands: Price near mid-band, volatility contracting, suggesting consolidation phase.

📊 Volume Trends: Current volume (6.7 lakh) is significantly below 1-week average (19.7 lakh), indicating reduced participation and lack of strong momentum.

🎯 Momentum Signals:

- Short-term bias: Weak to neutral

- Entry Zone: 225–230 ₹ (near 200 DMA support)

- Exit Zone: 245–250 ₹ (near 50 DMA resistance)

- Breakout potential above 250 ₹ could target 270–280 ₹.

📌 Trend Status: Consolidating with mild bearish undertone. A decisive move above 245 ₹ is needed to resume uptrend.

Positive

• Strong ROCE (23.4%) and ROE (17.1%) indicate efficient capital usage.
• Low debt-to-equity ratio (0.03) ensures financial stability.
• Quarterly PAT growth (248 Cr vs 200 Cr) shows strong earnings momentum.
• Trading above 200 DMA suggests long-term bullish structure intact.

Limitation

• RSI and MACD show weak short-term momentum.
• Volume participation is low, reducing breakout probability.
• PEG ratio (-1.29) indicates valuation concerns relative to growth.

Company Negative News

• No major negative news reported recently, but short-term technical weakness persists.

Company Positive News

• Strong quarterly profit growth (+60.7% YoY).
• FII holdings increased (+0.12%), showing foreign investor confidence.

Industry

• Industry PE: 20.6, in line with GPIL’s PE of 20.0, suggesting fair valuation.
• Steel and mining sector remains cyclical but supported by infrastructure demand.

Conclusion

⚖️ GPIL is in a consolidation phase with short-term weakness but strong long-term fundamentals. Optimal entry lies near 225–230 ₹ with resistance at 245–250 ₹. A breakout above 250 ₹ could trigger fresh momentum towards 270–280 ₹. Investors may accumulate on dips while traders should wait for confirmation above resistance.