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GRAVITA - Technical Analysis with Chart Patterns & Indicators

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Rating: 4

Last Updated Time : 28 May 26, 08:10 pm

Technical Rating: 4.0

Stock Code GRAVITA Market Cap 12,362 Cr. Current Price 1,674 ₹ High / Low 1,950 ₹
Stock P/E 41.6 Book Value 250 ₹ Dividend Yield 0.38 % ROCE 19.6 %
ROE 17.3 % Face Value 2.00 ₹ DMA 50 1,622 ₹ DMA 200 1,661 ₹
Chg in FII Hold -1.81 % Chg in DII Hold 0.44 % PAT Qtr 69.7 Cr. PAT Prev Qtr 72.2 Cr.
RSI 53.4 MACD 14.0 Volume 1,78,100 Avg Vol 1Wk 2,39,358
Low price 1,267 ₹ High price 1,950 ₹ PEG Ratio 0.97 Debt to equity 0.18
52w Index 59.6 % Qtr Profit Var -5.24 % EPS 40.2 ₹ Industry PE 19.8

📊 GRAVITA is trading at 1,674 ₹, above both its 50 DMA (1,622 ₹) and 200 DMA (1,661 ₹), reflecting short-term strength. RSI at 53.4 indicates moderate momentum, while MACD at 14.0 is positive, confirming bullish bias. Bollinger Bands show price moving in the mid-to-upper range, suggesting upside potential but also risk of consolidation. Current volume (1,78,100) is below the 1-week average (2,39,358), showing reduced participation despite price strength.

  • 💰 Optimal Buy Price: 1,650 – 1,670 ₹ (support near DMA levels)
  • 📈 Profit-Taking Exit Levels: 1,720 ₹ (first resistance), 1,780 – 1,800 ₹ (trendline resistance)
  • 📉 Stop-Loss / Loss Protection: 1,620 ₹ (below support)
  • ⏱️ Trend Status: Consolidating with bullish bias; reversal possible if price sustains above 1,720 ₹.

Positive

✅ Price trading above both 50 DMA and 200 DMA confirms bullish structure.

✅ EPS at 40.2 ₹ supports valuation strength.

✅ ROCE at 19.6% and ROE at 17.3% reflect efficient capital use.

✅ PEG ratio of 0.97 suggests fair valuation relative to growth.

✅ DII holdings increased (+0.44%), showing domestic support.

Limitation

⚠️ RSI near neutral levels limits breakout conviction.

⚠️ Volume below average reduces strength of momentum.

⚠️ Sequential PAT decline (69.7 Cr. vs 72.2 Cr.) shows earnings pressure.

⚠️ FII holdings decreased (-1.81%), indicating foreign investor caution.

⚠️ Dividend yield at 0.38% is modest.

Company Negative News

🚫 Sequential earnings decline adds caution.

🚫 Institutional selling by FIIs raises downside risk.

Company Positive News

🌟 Strong return ratios (ROCE, ROE) highlight operational efficiency.

🌟 Domestic institutional inflows (+0.44%) provide support.

🌟 Technical indicators confirm bullish bias above DMA levels.

Industry

🏭 Industry P/E at 19.8 is lower than GRAVITA’s 41.6, showing relative overvaluation.

🏭 Recycling and metals sector outlook remains positive with demand recovery.

Conclusion

📌 GRAVITA is consolidating with bullish bias, supported by strong fundamentals and positive MACD. Entry near 1,650 – 1,670 ₹ offers favorable positioning, while exits at 1,720 – 1,800 ₹ should be monitored. Stop-loss protection at 1,620 ₹ is advised. Despite short-term strength, reduced volume and FII outflows warrant cautious accumulation.

Would you like me to extend this into a swing trade overlay for 1–2 week holding logic, or keep the focus strictly on this intraday technical view?

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