KAJARIACER - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.6

📊 Chart Patterns & Trend: The stock is currently trading below both its 50 DMA (1,116 ₹) and 200 DMA (1,129 ₹), indicating short-term weakness. Price action suggests consolidation with a downward bias.

📈 Moving Averages: Bearish crossover as the price is below both 50 DMA and 200 DMA. This signals resistance around 1,115–1,130 ₹.

📉 RSI: At 43.4, the RSI is in neutral-to-weak territory, suggesting limited momentum and potential for further downside before oversold levels.

📉 MACD: Negative at -15.9, confirming bearish momentum and lack of strong buying signals.

📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions but also weak buying interest.

📉 Volume Trends: Current volume (60,358) is significantly below average weekly volume (2,50,006), showing lack of participation and weak conviction in recent moves.

🎯 Entry Zone: 980–1,020 ₹ (near support levels).

🎯 Exit Zone: 1,115–1,130 ₹ (near resistance at 50 & 200 DMA).

⚡ Momentum: Weak, with consolidation and mild bearish signals.

Positive

• Strong quarterly profit growth (30% QoQ, PAT 121 Cr vs 99.7 Cr).
• Low debt-to-equity ratio (0.04) ensures financial stability.
• High ROCE (16.8%) indicates efficient capital usage.
• Industry PE (46.2) is slightly lower than stock PE, showing premium valuation but sector strength.

Limitation

• High P/E ratio (50.7) compared to industry average, suggesting overvaluation.
• Weak technical signals (below DMA, negative MACD, low RSI).
• Decline in FII (-0.98%) and DII (-1.39%) holdings indicates reduced institutional confidence.
• PEG ratio (-6.19) highlights poor growth-adjusted valuation.

Company Negative News

• Falling institutional investor interest (FII & DII stake reduction).
• Stock trading below key moving averages, showing bearish sentiment.

Company Positive News

• Quarterly profit jump of 30% shows strong operational performance.
• Consistent dividend yield (0.85%) supports shareholder returns.

Industry

• Ceramics and building materials sector is stable with demand tied to real estate and infrastructure growth.
• Industry PE at 46.2 indicates healthy valuations across peers.

Conclusion

⚖️ Kajaria Ceramics (KAJARIACER) is currently in a consolidation phase with bearish bias. Short-term momentum is weak, with entry opportunities near 980–1,020 ₹ and resistance around 1,115–1,130 ₹. Fundamentally strong with profit growth and low debt, but technically cautious due to weak RSI, MACD, and volume trends. Best suited for medium-to-long term investors; traders should wait for reversal signals before aggressive entry.