GRASIM - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.7

📊 Chart Patterns: GRASIM is trading above both its 50 DMA (2,783 ₹) and 200 DMA (2,726 ₹), reflecting a bullish undertone. The price is close to its 52-week high (2,979 ₹), suggesting strong resistance ahead.

📈 Moving Averages:

- 50 DMA: 2,783 ₹ (support)

- 200 DMA: 2,726 ₹ (major support)

The stock is comfortably above both averages, confirming an uptrend.

📉 RSI: 56.7 → Neutral to slightly bullish, not overbought, leaving room for further upside.

📈 MACD: 7.87 → Positive crossover, confirming bullish momentum.

📊 Bollinger Bands: Price near upper band, showing strong buying interest but risk of short-term pullback.

📊 Volume Trends: Current volume (2.6 lakh) is lower than 1-week average (4.9 lakh), indicating reduced participation despite bullish signals.

🎯 Momentum Signals:

- Short-term bias: Bullish with moderate strength

- Entry Zone: 2,770–2,800 ₹ (near DMA support)

- Exit Zone: 2,950–2,980 ₹ (near 52-week high resistance)

- Breakout potential above 2,980 ₹ could target 3,050–3,100 ₹.

📌 Trend Status: Trending upward with consolidation near resistance. A breakout above 2,980 ₹ would confirm continuation of uptrend.

Positive

• Quarterly PAT recovery (805 Cr vs -118 Cr) shows strong turnaround.
• FII holdings increased (+0.58%), reflecting foreign investor confidence.
• Stock trading above both 50 DMA and 200 DMA supports bullish structure.
• Strong book value (808 ₹) compared to current price provides asset backing.

Limitation

• Extremely high P/E (557) compared to industry PE (33.2), indicating severe overvaluation.
• Weak ROCE (1.52%) and ROE (0.35%) show poor capital efficiency.
• PEG ratio (-9.23) highlights valuation concerns relative to growth.
• DII holdings decreased (-0.64%), showing reduced domestic institutional support.

Company Negative News

• Quarterly profit variation (+6.31%) is modest despite large recovery, raising sustainability concerns.

Company Positive News

• Strong PAT turnaround in the latest quarter.
• FII inflows (+0.58%) show renewed foreign investor interest.

Industry

• Industry PE: 33.2, far lower than GRASIM’s inflated P/E, suggesting valuation mismatch.
• Cement and diversified sector remains cyclical, influenced by infrastructure demand and raw material costs.

Conclusion

⚖️ GRASIM is trending upward with bullish signals supported by MACD and DMA levels. Entry near 2,770–2,800 ₹ offers accumulation opportunity, while resistance lies at 2,950–2,980 ₹. A breakout above 2,980 ₹ could extend momentum towards 3,050–3,100 ₹. Investors should remain cautious due to extreme valuations and weak efficiency metrics, while traders may ride the trend with stop-loss near 2,750 ₹.