INDIACEM - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.6

📉 INDIACEM is consolidating with improving short-term momentum but weak fundamentals and low volume participation.

📊 Technical Analysis

• Trend Status: Consolidating — price is above both 50-DMA and 200-DMA, but lacks volume strength and clear breakout signals.
• Moving Averages: Price ₹402 is above 50-DMA (₹386) and 200-DMA (₹352), indicating mild bullish bias.
• RSI (61.9): Bullish zone, suggesting upward momentum with room to rise.
• MACD (1.96): Positive crossover, indicating early bullish momentum.
• Bollinger Bands: Price near upper band, signaling strength but potential resistance.
• Volume: Current volume (6.8L) is significantly below weekly average (17.2L), showing weak participation.

🎯 Entry & Exit Zones

• Support Levels: ₹386 (50-DMA), ₹370, ₹352 (200-DMA)
• Resistance Levels: ₹415, ₹430 (52-week high)
• Optimal Entry: ₹386–₹395 (on pullback)
• Exit Target: ₹415–₹430 (resistance zone)

✅ Positive

• Price has risen 68% from its 52-week low of ₹239, showing strong recovery.
• MACD and RSI indicate bullish momentum building.
• DII holdings surged by 6.49%, reflecting strong domestic institutional confidence.
• Quarterly loss narrowed from ₹13.8 Cr to ₹6.86 Cr, showing operational improvement.

⚠️ Limitation

• Negative ROCE (-5.85%) and ROE (-9.32%) reflect poor capital efficiency.
• EPS of -₹17.0 and absence of P/E ratio indicate persistent losses.
• Volume significantly below average, suggesting lack of conviction in price movement.

📉 Company Negative News

• Continued quarterly losses despite narrowing margins.

📈 Company Positive News

• Strong DII accumulation and improving quarterly performance signal potential turnaround interest.

🏭 Industry

• Cement sector remains cyclical but benefits from infrastructure and housing demand.
• Industry P/E (38.9) is significantly higher than INDIACEM’s undefined P/E, suggesting valuation uncertainty.

🧾 Conclusion

• INDIACEM is consolidating with improving technical momentum but weak fundamentals.
• Entry near ₹386–₹395 could offer speculative value with targets around ₹415–₹430.
• Investors should monitor volume and earnings trajectory for confirmation of sustained recovery.