JKCEMENT - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.2

📉 JKCEMENT is currently in a short-term downtrend with weak momentum indicators and declining volume.

📊 Technical Analysis

• Trend: The stock is reversing from its recent highs and showing signs of weakness.
• Moving Averages: Price is below the 50 DMA (₹6,508) and near the 200 DMA (₹5,881), indicating bearish short-term sentiment but long-term support.
• RSI (37.9): Near oversold territory, suggesting potential for a bounce but not yet a strong buy signal.
• MACD (-87.4): Deeply negative, confirming bearish momentum.
• Bollinger Bands: Price is approaching the lower band, indicating possible support but also volatility.
• Volume: Current volume (2.79L) is significantly higher than 1-week average (1.36L), suggesting recent selling pressure.

Sources

MoneyControl

+2

🎯 Entry & Exit Zones

• Support Zone: ₹5,850 – ₹5,880 (near 200 DMA)
• Resistance Zone: ₹6,500 – ₹6,700 (50 DMA and recent breakdown level)
• Optimal Entry: ₹5,900 – ₹5,950 (if RSI stabilizes and volume eases)
• Exit Target: ₹6,500 – ₹6,700 (short-term recovery zone)

✅ Positive

• Strong ROE (14.6%) and ROCE (14.5%) indicate efficient capital use.
• EPS of ₹146 and quarterly profit variance of 334% show earnings potential.
• FII holding increased by 1.01%, signaling institutional confidence.

⚠️ Limitation

• High P/E ratio (41.7) and PEG (9.75) suggest overvaluation.
• MACD and RSI indicate weak momentum and potential further downside.
• Debt-to-equity ratio of 0.99 is relatively high for the sector.

📉 Company Negative News

• Quarterly PAT dropped from ₹332 Cr. to ₹176 Cr., a sharp decline.
• DII holding decreased by 1.31%, indicating reduced domestic institutional interest.

📈 Company Positive News

• Strong historical performance with 52-week gain of 54.6%.
• Recent board meeting suggests active corporate governance and transparency.

🏗️ Industry

• Industry P/E is 38.9, slightly below JKCEMENT’s, indicating sector-wide optimism.
• Cement sector is cyclical and may benefit from infrastructure spending and housing demand.

🧾 Conclusion

• JKCEMENT is currently reversing from its highs with weak technical indicators.
• Short-term traders should wait for RSI to stabilize and MACD to flatten before entering.
• Long-term investors may consider accumulating near ₹5,900 with a target of ₹6,700, keeping stop-loss below ₹5,850.