GRAPHITE - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.1

📈 Technical Analysis

• 📈 Chart Pattern: GRAPHITE is in a strong uptrend, forming higher highs and higher lows, approaching its 52-week high of 652 ₹.
• 📈 Moving Averages: Price is well above both 50-DMA (562 ₹) and 200-DMA (536 ₹), confirming bullish momentum.
• 📈 RSI (69.6): Near overbought zone, indicating strong momentum but caution for short-term pullback.
• 📈 MACD (15.7): Positive crossover, reinforcing bullish trend strength.
• 📈 Bollinger Bands: Price near upper band, suggesting breakout potential with elevated volatility.
• 📉 Volume Trend: Current volume (12.93L) is below 1-week average (41.09L), indicating reduced participation — a cautionary signal.

📍 Entry & Exit Zones

• ✅ Entry Zone: 580 ₹ – 600 ₹ (near breakout retest and psychological support)
• 🚪 Exit Zone: 645 ₹ – 655 ₹ (resistance from 52-week high)

📊 Trend Status

• 📈 Current Trend: Trending upward
• ⚠️ Bias: Bullish with caution due to high RSI and low volume

✅ Positive

• Price above key moving averages supports bullish structure.
• FII holding increased by 1.61%, indicating strong foreign investor confidence.
• MACD and RSI confirm upward momentum.
• Low debt-to-equity ratio (0.02) reflects financial prudence.

⚠️ Limitation

• Volume below average — momentum may not be fully supported.
• Negative PEG ratio (-4.01) suggests valuation concerns relative to growth.
• ROCE (10.3%) and ROE (8.26%) are modest for the sector.

📉 Company Negative News

• DII holding dropped by 0.51%, indicating reduced domestic institutional interest.
• Quarterly profit variation declined by 29.3%, suggesting earnings pressure.

📈 Company Positive News

• Quarterly PAT improved from 62 Cr. to 145 Cr., showing operational recovery.

🏭 Industry

• Graphite and electrode sector is cyclical, influenced by global steel demand and commodity pricing.
• GRAPHITE trades below industry PE (30.9 vs 39.9), suggesting relative undervaluation.

🧾 Conclusion

• GRAPHITE is trending upward with bullish technical indicators and improving fundamentals.
• Short-term traders may consider entries near 590 ₹ and exits near 650 ₹.
• Long-term investors should monitor volume strength and earnings consistency before adding exposure.