INDIAMART - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.4

📊 Chart Patterns: INDIAMART is trading below both its 50 DMA (2,358 ₹) and 200 DMA (2,418 ₹), showing weakness. Price action suggests consolidation with bearish undertone, as the stock struggles to sustain above key moving averages.

📈 Moving Averages: Current price (2,235 ₹) is below both 50 DMA and 200 DMA, confirming short-term and medium-term weakness.

📉 RSI: At 42.0, RSI is in the neutral-to-weak zone, leaning towards oversold conditions but not yet signaling a rebound.

📉 MACD: Negative (-42.9) indicates strong bearish crossover, confirming downside momentum.

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

📊 Volume Trends: Current volume (33k) is significantly lower than 1-week average (80k), showing weak participation and lack of buying interest.

📌 Momentum Signals: Weak short-term momentum; rebound possible if price holds above 2,200 ₹ support.

🎯 Entry Zone: 2,200–2,240 ₹ (near support).

🎯 Exit Zone: 2,350–2,400 ₹ (near resistance trendline).

🔎 Trend Status: Consolidating with bearish bias.

Positive

• Strong ROCE (37.7%) and ROE (30.0%) indicate efficient capital use.
• Debt-to-equity ratio is very low (0.01), showing financial stability.
• Dividend yield of 1.32% adds income appeal.
• PEG ratio of 0.88 suggests reasonable valuation relative to growth.

Limitation

• Quarterly PAT dropped sharply (₹83.5 Cr vs ₹166 Cr), down 34.2%.
• Stock trading below both 50 DMA and 200 DMA, showing technical weakness.
• Volume participation is weak, limiting breakout potential.
• Stock P/E (22.2) is lower than industry PE (30.1), but earnings volatility reduces attractiveness.

Company Negative News

• Sharp decline in quarterly profits, raising concerns about growth sustainability.
• DII holdings decreased (-2.30%), showing reduced domestic institutional confidence.

Company Positive News

• FII holdings increased (+2.32%), reflecting foreign investor confidence.
• EPS remains strong at 101 ₹, supporting long-term valuation.
• Debt-free balance sheet ensures financial resilience.

Industry

• Industry PE at 30.1 is higher than INDIAMART’s P/E (22.2), suggesting relative undervaluation.
• Digital and e-commerce sector continues to expand, offering long-term growth opportunities.

Conclusion

⚖️ INDIAMART is consolidating with bearish signals, trading below key moving averages and showing weak momentum. Short-term traders may consider entry near 2,200–2,240 ₹ with exit around 2,350–2,400 ₹. Long-term investors may find value in strong fundamentals, low debt, and FII support, but should be cautious of earnings volatility and weak near-term technicals.