GRSE - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.5

📊 Chart Patterns & Trend: GRSE is trading below both its 50 DMA (2,566 ₹) and 200 DMA (2,409 ₹), showing weakness. Support lies around 2,250–2,280 ₹, while resistance is seen near 2,550–2,600 ₹. The stock is in a bearish reversal phase with oversold signals emerging.

📈 Moving Averages: Current price (2,298 ₹) is below both 50 DMA and 200 DMA, indicating bearish sentiment in the short-to-medium term.

📉 RSI: At 26.6, RSI suggests oversold conditions, signaling potential accumulation zones.

📉 MACD: Strongly negative (-117) reflects bearish momentum, suggesting caution until a crossover occurs.

📊 Bollinger Bands: Price is near the lower band, implying limited downside and potential rebound if demand picks up.

📊 Volume Trends: Current volume (18.4 lakh) is above the 1-week average (11.9 lakh), showing increased participation despite weakness.

🎯 Entry Zone: 2,250–2,280 ₹ (near support and oversold RSI)

🎯 Exit Zone: 2,550–2,600 ₹ (near resistance and upper band)

Positive

• Strong ROCE (36.6%) and ROE (27.6%) highlight excellent capital efficiency.
• Debt-to-equity ratio at 0.01 ensures financial stability.
• Quarterly PAT growth from 120 Cr. to 154 Cr. shows earnings momentum.
• EPS at 53.8 ₹ reflects strong profitability.

Limitation

• P/E ratio (42.7) is below industry average (57.9) but still relatively high.
• Dividend yield at 0.62% provides modest income appeal.
• RSI and MACD show strong bearish signals, limiting short-term upside.

Company Negative News

• FII holdings decreased by 2.07%, showing reduced foreign investor confidence.
• Stock trading below both 50 DMA and 200 DMA indicates weakness.

Company Positive News

• Quarterly profit variation at 57.3% highlights strong earnings growth.
• DII holdings increased by 0.18%, reflecting domestic institutional support.
• 52-week performance index at 47.4% shows resilience compared to broader market.

Industry

• Industry P/E at 57.9 indicates sector is moderately valued compared to GRSE’s lower valuation.
• Defense and shipbuilding sector demand expected to remain strong with government contracts and infrastructure expansion.

Conclusion

⚖️ GRSE is in a bearish reversal phase with oversold RSI and strong negative MACD. Entry near 2,250–2,280 ₹ offers favorable risk-reward, while exits around 2,550–2,600 ₹ are optimal. Watch for MACD crossover and volume strength to confirm a rebound. Strong fundamentals provide stability despite current technical weakness.