HONASA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.1
| Stock Code | HONASA | Market Cap | 13,683 Cr. | Current Price | 420 ₹ | High / Low | 423 ₹ |
| Stock P/E | 70.3 | Book Value | 42.9 ₹ | Dividend Yield | 0.00 % | ROCE | 18.5 % |
| ROE | 15.0 % | Face Value | 10.0 ₹ | DMA 50 | 341 ₹ | DMA 200 | 307 ₹ |
| Chg in FII Hold | -0.88 % | Chg in DII Hold | 0.60 % | PAT Qtr | 64.5 Cr. | PAT Prev Qtr | 51.7 Cr. |
| RSI | 84.7 | MACD | 16.8 | Volume | 57,03,372 | Avg Vol 1Wk | 1,81,02,884 |
| Low price | 248 ₹ | High price | 423 ₹ | PEG Ratio | 1.18 | Debt to equity | 0.08 |
| 52w Index | 98.3 % | Qtr Profit Var | 162 % | EPS | 5.87 ₹ | Industry PE | 43.0 |
📈 Chart Patterns: HONASA is trading at its 52-week high (₹423), showing strong upward momentum. The broader structure reflects a steep rally from ₹248, with price action forming higher highs and strong bullish continuation.
📊 Moving Averages: Current price (₹420) is well above DMA 50 (₹341) and DMA 200 (₹307), confirming strong bullish momentum.
📉 RSI: At 84.7, RSI is overbought, suggesting caution for short-term traders.
📈 MACD: Positive at 16.8, showing bullish crossover and continuation of upward momentum.
📉 Bollinger Bands: Price is hugging the upper band, reflecting strong bullish momentum but risk of short-term pullback.
📊 Volume Trends: Current volume (57.0L) is below average weekly volume (181.0L), showing reduced participation despite price strength.
⚡ Short-Term Momentum Signals: Strong bullish bias with high momentum; breakout sustained above ₹423 confirms trend strength.
🎯 Entry Zone: ₹400–₹420 (support region).
🎯 Exit Zone: ₹423–₹440 (resistance zone).
🔀 Trend Status: Trending upward with bullish undertone; consolidation or pullback possible due to overbought RSI.
Positive
- Strong ROCE (18.5%) and ROE (15.0%) highlight operational efficiency.
- Quarterly PAT surged from ₹51.7 Cr. to ₹64.5 Cr. (+162%).
- EPS at ₹5.87 supports earnings visibility.
- Price trading above both DMA 50 and DMA 200 confirms bullish trend.
Limitation
- Dividend yield at 0.00% offers no income support.
- High P/E ratio (70.3) compared to industry PE (43.0) indicates premium valuation.
- FII holdings declined (-0.88%), showing reduced foreign investor confidence.
- Volume participation weaker than average, limiting breakout conviction.
Company Negative News
- Decline in FII holdings (-0.88%).
- Overbought RSI signals potential short-term correction.
Company Positive News
- Quarterly profit growth (+162%) boosts investor sentiment.
- DII holdings increased (+0.60%), showing domestic investor confidence.
- Stock trading near 52-week high reflects bullish sentiment.
Industry
- Industry PE at 43.0 vs. HONASA PE at 70.3 shows premium valuation.
- Consumer goods sector supported by rising demand and brand expansion.
Conclusion
HONASA is trending upward with strong bullish undertones. Short-term traders may consider entry around ₹400–₹420 with exit near ₹423–₹440. Long-term investors should monitor valuation risks and institutional sentiment before fresh accumulation.
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