GRASIM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | GRASIM | Market Cap | 2,15,583 Cr. | Current Price | 3,167 ₹ | High / Low | 3,198 ₹ |
| Stock P/E | 486 | Book Value | 812 ₹ | Dividend Yield | 0.32 % | ROCE | 2.19 % |
| ROE | 0.81 % | Face Value | 2.00 ₹ | DMA 50 | 2,880 ₹ | DMA 200 | 2,788 ₹ |
| Chg in FII Hold | 0.42 % | Chg in DII Hold | -0.71 % | PAT Qtr | -81.7 Cr. | PAT Prev Qtr | -127 Cr. |
| RSI | 77.1 | MACD | 100 | Volume | 3,22,971 | Avg Vol 1Wk | 16,11,903 |
| Low price | 2,502 ₹ | High price | 3,198 ₹ | PEG Ratio | -12.1 | Debt to equity | 0.23 |
| 52w Index | 95.6 % | Qtr Profit Var | 53.0 % | EPS | 5.12 ₹ | Industry PE | 29.0 |
📊 GRASIM is trading at 3,167 ₹, well above its 50 DMA (2,880 ₹) and 200 DMA (2,788 ₹), confirming strong short-term momentum. RSI at 77.1 indicates overbought territory, suggesting risk of profit booking. MACD at 100 is highly positive, reinforcing bullish bias. Bollinger Bands show price near the upper band, highlighting strong buying interest but also volatility risk. Current volume (3,22,971) is significantly below the 1-week average (16,11,903), showing weak participation despite price strength.
- 💰 Optimal Buy Price: 3,050 – 3,100 ₹ (support near DMA levels)
- 📈 Profit-Taking Exit Levels: 3,180 – 3,200 ₹ (near 52-week high resistance)
- 📉 Stop-Loss / Loss Protection: 3,000 ₹ (below support)
- ⏱️ Trend Status: Trending upward but overbought; consolidation or reversal possible near 3,200 ₹.
Positive
✅ Price trading above both 50 DMA and 200 DMA confirms bullish bias.
✅ RSI and MACD support strong momentum.
✅ FII holdings increased (+0.42%), showing foreign investor confidence.
✅ PAT improved (-81.7 Cr. vs -127 Cr.), showing reduced losses.
✅ EPS at 5.12 ₹ provides earnings base.
Limitation
⚠️ RSI above 70 indicates overbought conditions.
⚠️ Extremely high P/E (486 vs industry 29.0) signals severe overvaluation.
⚠️ ROCE (2.19%) and ROE (0.81%) are very weak.
⚠️ PEG ratio of -12.1 highlights poor growth prospects.
⚠️ Volume participation is weak compared to average, limiting breakout conviction.
⚠️ DII holdings decreased (-0.71%), showing reduced domestic confidence.
Company Negative News
🚫 Persistent losses raise concerns about profitability.
🚫 Valuation risks due to extreme P/E and negative PEG ratio.
🚫 Weak return ratios highlight inefficiency.
Company Positive News
🌟 Reduced quarterly losses show operational improvement.
🌟 Strong technical momentum above DMA levels.
🌟 Foreign institutional inflows provide support.
Industry
🏭 Industry P/E at 29.0 is far lower than GRASIM’s 486, showing extreme overvaluation.
🏭 Diversified industrial sector outlook remains stable with moderate valuations.
Conclusion
📌 GRASIM is trending upward with strong technical momentum but remains fundamentally weak and highly overvalued. Entry near 3,050 – 3,100 ₹ offers cautious positioning, while exits at 3,180 – 3,200 ₹ should be monitored. Stop-loss protection at 3,000 ₹ is advised. Despite short-term strength, long-term holding is risky unless profitability improves significantly.
Would you like me to expand this into a swing trade overlay for 1–2 week holding logic, or keep the focus strictly on this intraday technical view?