GRAVITA - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.2

📊 Chart Patterns: GRAVITA is trading above both its 50 DMA (1,755 ₹) and 200 DMA (1,761 ₹), reflecting a bullish structure. The price is well above its 52-week low (1,380 ₹) but below its high (2,475 ₹), suggesting room for further upside.

📈 Moving Averages:

- 50 DMA: 1,755 ₹ (support)

- 200 DMA: 1,761 ₹ (support zone)

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

📉 RSI: 55.9 → Neutral to slightly bullish, not overbought, leaving scope for further gains.

📈 MACD: 28.6 → Strong 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 (1.27 lakh) is lower than 1-week average (1.80 lakh), indicating reduced participation despite bullish signals.

🎯 Momentum Signals:

- Short-term bias: Bullish with moderate strength

- Entry Zone: 1,780–1,800 ₹ (near DMA support)

- Exit Zone: 1,950–2,000 ₹ (resistance zone)

- Breakout potential above 2,000 ₹ could target 2,200–2,250 ₹.

📌 Trend Status: Trending upward with bullish signals. Consolidation possible near resistance, but breakout potential remains strong.

Positive

• Strong ROCE (21.4%) and ROE (18.5%) indicate efficient capital usage.
• Quarterly PAT growth (87.2 Cr vs 68.0 Cr) shows earnings momentum.
• EPS of 35.6 ₹ supports valuation strength.
• Low debt-to-equity ratio (0.11) ensures financial stability.

Limitation

• Stock P/E (51.0) is significantly higher than industry PE (20.0), suggesting premium valuation.
• Volume participation is lower than average, reducing breakout probability.
• 52-week index at 39.9% shows the stock is still far from its highs.

Company Negative News

• FII holdings decreased (-0.44%), showing reduced foreign investor confidence.

Company Positive News

• DII holdings increased (+0.46%), reflecting domestic institutional support.
• Quarterly profit growth (+72.4%) highlights strong operational performance.

Industry

• Industry PE: 20.0, lower than GRAVITA’s PE of 51.0, suggesting overvaluation.
• Recycling and metals sector remains cyclical but supported by sustainability-driven demand.

Conclusion

⚖️ GRAVITA is trending upward with bullish signals supported by MACD and DMA levels. Entry near 1,780–1,800 ₹ offers accumulation opportunity, while resistance lies at 1,950–2,000 ₹. A breakout above 2,000 ₹ could extend momentum towards 2,200–2,250 ₹. Investors may accumulate on dips, while traders can ride the trend with stop-loss near 1,750 ₹.