JKCEMENT - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.4

📊 Chart Patterns & Trend: The stock is currently trading below both its 50 DMA (5,869 ₹) and 200 DMA (5,814 ₹), indicating short-term weakness. The price action suggests consolidation near support zones after a steep decline from highs.

📈 Moving Averages: Both 50 DMA and 200 DMA are above the current price (5,432 ₹), showing bearish momentum. A crossover is not imminent, but the stock remains under pressure.

📉 RSI: At 38.3, RSI is near oversold territory, suggesting potential for a short-term bounce if buying interest emerges.

📉 MACD: Negative at -86.0, confirming bearish sentiment and lack of strong upward momentum.

📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible mean reversion in the short term.

📊 Volume Trends: Current volume (53,561) is slightly below average weekly volume (59,892), showing reduced participation and lack of strong conviction from buyers.

🎯 Momentum Signals: Short-term signals are weak, but oversold RSI and Bollinger Band positioning suggest a possible technical rebound.

💹 Entry Zone: 4,300–4,500 ₹ (near strong support levels).

💹 Exit Zone: 5,800–6,000 ₹ (near resistance at DMA levels).

📌 Overall Trend: The stock is in consolidation phase with bearish undertones, but oversold indicators hint at a potential reversal if volumes pick up.

Positive

• Strong EPS of 146 ₹ and ROE of 14.6%.
• FII holdings increased by 1.01%, showing foreign investor confidence.
• Quarterly profit variation of 334% indicates operational efficiency rebound.

Limitation

• High P/E of 38.4 compared to industry average (33.2).
• Debt-to-equity ratio at 0.99 is relatively high for the sector.
• Dividend yield is low at 0.28%, limiting income appeal.

Company Negative News

• Quarterly PAT dropped to 176 Cr. from 332 Cr., showing earnings pressure.
• DII holdings decreased by 1.31%, reflecting reduced domestic institutional confidence.

Company Positive News

• Strong rebound in quarterly profit variation (334%).
• Improved foreign investor participation.

Industry

• Industry PE at 33.2, slightly lower than company’s P/E, suggesting sector is moderately valued.
• Cement demand remains cyclical but supported by infrastructure growth in India.

Conclusion

⚖️ JKCEMENT is currently consolidating with bearish signals, but oversold RSI and Bollinger Band positioning suggest potential for a short-term rebound. Entry near 4,300–4,500 ₹ offers favorable risk-reward, while exits around 5,800–6,000 ₹ are optimal. Long-term investors should monitor debt levels and earnings consistency before committing heavily.