GRASIM - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.5

📈 Technical Analysis

• 📈 Chart Pattern: GRASIM is in a short-term uptrend, approaching its 52-week high of 2,979 ₹ with higher lows and higher highs.
• 📈 Moving Averages: Price is above both 50-DMA (2,827 ₹) and 200-DMA (2,711 ₹), indicating bullish momentum.
• 📈 RSI (55.9): In bullish-neutral territory, suggesting moderate strength without being overbought.
• 📈 MACD (33.0): Positive crossover, reinforcing upward momentum.
• 📈 Bollinger Bands: Price near upper band, indicating breakout potential but also increased volatility.
• 📉 Volume Trend: Current volume (5.85L) is below 1-week average (7.23L), suggesting weakening participation.

📍 Entry & Exit Zones

• ✅ Entry Zone: 2,820 ₹ – 2,860 ₹ (near 50-DMA and minor support)
• 🚪 Exit Zone: 2,970 ₹ – 2,990 ₹ (resistance from 52-week high)

📊 Trend Status

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

✅ Positive

• Price above key moving averages supports bullish structure.
• FII holding increased by 0.58%, indicating foreign investor confidence.
• MACD and RSI confirm upward momentum.

⚠️ Limitation

• Volume below average — rally may lack conviction.
• Extremely high P/E (667) and negative PEG (-11.0) suggest overvaluation and poor growth alignment.
• ROCE (1.52%) and ROE (0.35%) are very weak for a large-cap stock.

📉 Company Negative News

• DII holding dropped by 0.64%, indicating reduced domestic institutional interest.
• Quarterly PAT remains negative (-118 Cr.), with a 127% decline in profit variation.

📈 Company Positive News

• Losses have narrowed from -174 Cr. to -118 Cr., showing some operational improvement.

🏭 Industry

• Conglomerate and diversified businesses are sensitive to macroeconomic cycles and sectoral performance.
• GRASIM trades far above industry PE (667 vs 38.9), indicating speculative valuation or earnings distortion.

🧾 Conclusion

• GRASIM is trending upward with bullish technical indicators but faces significant valuation and profitability concerns.
• Short-term traders may consider entries near 2,850 ₹ and exits near 2,980 ₹.
• Long-term investors should be cautious and monitor earnings turnaround and volume strength before considering exposure.