GRAPHITE - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.2

📊 Chart Patterns: GRAPHITE is trading close to its 50 DMA (554 ₹) and 200 DMA (542 ₹), showing indecision around key levels. The price has corrected from its 52-week high (652 ₹) and is consolidating near support zones.

📈 Moving Averages:

- 50 DMA: 554 ₹ (resistance/support)

- 200 DMA: 542 ₹ (support zone)

The stock is hovering around both averages, indicating sideways consolidation.

📉 RSI: 36.7 → Near oversold territory, suggesting weak momentum but potential for a short-term bounce.

📉 MACD: -8.79 → Bearish crossover, confirming downward momentum.

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

📊 Volume Trends: Current volume (2.29 lakh) is slightly below 1-week average (2.40 lakh), showing reduced participation and lack of strong buying interest.

🎯 Momentum Signals:

- Short-term bias: Bearish with oversold signals

- Entry Zone: 540–550 ₹ (near support levels)

- Exit Zone: 580–600 ₹ (near resistance)

- Breakout potential above 600 ₹ could target 630–650 ₹.

📌 Trend Status: Consolidating with bearish undertone. A decisive move above 600 ₹ is needed to confirm reversal.

Positive

• Strong book value (287 ₹) compared to current price, offering asset backing.
• Dividend yield of 1.98% provides shareholder returns.
• Low debt-to-equity ratio (0.03) ensures financial stability.
• FII holdings increased (+1.61%), showing foreign investor confidence.

Limitation

• Quarterly PAT declined (92 Cr vs 145 Cr), showing earnings pressure.
• ROCE (10.3%) and ROE (8.26%) are modest, reflecting weak capital efficiency.
• PEG ratio (-4.63) highlights valuation concerns relative to growth.
• DII holdings decreased (-0.51%), showing reduced domestic institutional support.

Company Negative News

• Quarterly profit variation (-49.4%) indicates earnings volatility.

Company Positive News

• FII inflows (+1.61%) reflect renewed foreign investor interest.
• Company maintains strong balance sheet with minimal debt.

Industry

• Industry PE: 39.0, slightly higher than GRAPHITE’s PE of 35.6, suggesting fair valuation.
• Sector remains cyclical, influenced by global demand for graphite electrodes and steel production.

Conclusion

⚖️ GRAPHITE is consolidating near support levels with bearish short-term signals but oversold conditions. Entry near 540–550 ₹ offers accumulation opportunity, while resistance lies at 580–600 ₹. A breakout above 600 ₹ could extend momentum towards 630–650 ₹. Investors should remain cautious due to earnings volatility, while traders may attempt short-term plays near support zones.