HONASA - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.4

📊 Chart Patterns: Honasa is trading below both its 50 DMA (277 ₹) and 200 DMA (288 ₹), showing short-term weakness. Current price (270 ₹) is near support at 260–265 ₹, with resistance around 280–290 ₹. The broader range remains 260–290 ₹.

📉 Moving Averages: Price below both averages indicates bearish sentiment. Sustaining above 288 ₹ is needed to regain strength.

📉 RSI: At 36.9, RSI suggests the stock is oversold, indicating potential rebound opportunities.

📉 MACD: Negative at -7.63, confirming bearish momentum and signaling caution for short-term traders.

📊 Bollinger Bands: Price is near the lower band, suggesting oversold conditions and possible short-term bounce.

📉 Volume Trends: Current volume (5,58,675) is below average weekly volume (12,70,524), showing reduced participation and lack of strong buying conviction.

📌 Short-term Momentum Signals: Weak momentum with oversold RSI. A bounce is possible if price holds above 260 ₹. Breakout above 288–290 ₹ could trigger recovery toward 300 ₹.

🎯 Optimal Entry Zone: 260–270 ₹ (near support).

🎯 Optimal Exit Zone: 285–300 ₹ (near resistance).

📉 Trend Status: The stock is consolidating with a bearish bias, awaiting reversal signals.

Positive

• Quarterly PAT growth (38.4 Cr. vs 39.9 Cr.) shows resilience despite slight decline.
• EPS of 3.83 ₹ supports earnings visibility.
• DII holding increased by 0.25%, reflecting domestic institutional support.
• PEG ratio of 1.48 indicates fair growth relative to valuation.

Limitation

• High P/E (70.6) compared to industry PE (49.7) suggests overvaluation.
• ROCE (7.44%) and ROE (5.51%) are modest, showing limited efficiency.
• Dividend yield is 0.00%, offering no passive income appeal.
• Stock trading below both 50 DMA and 200 DMA shows weak technical strength.

Company Negative News

• FII holding decreased by -0.59%, showing reduced foreign investor confidence.
• Slight decline in quarterly PAT (38.4 Cr. vs 39.9 Cr.) indicates earnings pressure.

Company Positive News

• DII holding increased, reflecting domestic investor confidence.
• Quarterly profit variation of 357% highlights strong year-on-year growth momentum.

Industry

• Industry PE at 49.7 is lower than Honasa’s PE (70.6), suggesting relative overvaluation.
• Consumer goods and personal care sector outlook remains positive with rising demand in urban markets.

Conclusion

⚖️ Honasa shows strong long-term growth potential but faces short-term technical weakness. The stock is consolidating below key averages with bearish signals from RSI and MACD. Entry is favorable near 260–270 ₹ with cautious exit around 285–300 ₹. Long-term investors may hold for sector growth, while short-term traders should wait for confirmation above 288 ₹.