MANYAVAR - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.1

📊 Chart & Trend Analysis:

MANYAVAR is trading at ₹596, below both its 50 DMA (₹634) and 200 DMA (₹765), indicating a bearish structure. RSI at 38.1 suggests the stock is approaching oversold territory. MACD at -13.0 confirms strong bearish momentum. Bollinger Bands show price near the lower band, signaling continued weakness with limited reversal signs. Current volume (81,135) is slightly above the 1-week average (69,581), reflecting selling pressure rather than accumulation.

🔎 Momentum Signals:

- Short-term momentum: Bearish with oversold signals emerging.

- Support levels: ₹585 (near-term), ₹575 (major support).

- Resistance levels: ₹620, ₹634 (DMA 50), ₹650.

- Optimal entry zone: ₹580–595 (only for high-risk traders).

- Optimal exit zone: ₹620–640.

- Current phase: Downtrend with possible consolidation near support.

Positive

• Strong ROCE (25.9%) and ROE (22.3%) highlight efficient capital utilization.
• Dividend yield of 1.33% provides investor returns.
• EPS of ₹15.9 reflects consistent profitability despite recent decline.

Limitation

• Stock trading below both 50 DMA and 200 DMA confirms bearish trend.
• Quarterly PAT fell from ₹70.3 Cr. to ₹56.1 Cr. (-16.2% variation).
• High PEG ratio (5.02) suggests valuation is stretched relative to growth.
• Debt-to-equity ratio of 0.27 is higher compared to peers, adding financial risk.

Company Negative News

• FII holding decreased by -0.12% and DII holding by -0.15%, showing reduced institutional confidence.
• 52-week index at 2.68% indicates severe underperformance compared to broader market.

Company Positive News

• Dividend yield of 1.33% supports shareholder value.
• Strong ROCE and ROE metrics highlight operational efficiency despite earnings decline.

Industry

• Industry P/E at 55.9 is higher than MANYAVAR’s (37.6), suggesting peers trade at richer valuations.
• Sector outlook remains stable with long-term demand in apparel and retail.

Conclusion

⚠️ MANYAVAR is in a downtrend, trading below key moving averages with bearish momentum. Entry near ₹580–595 is only suitable for aggressive traders seeking a rebound, while exits around ₹620–640 are safer. Strong fundamentals like ROCE and ROE provide support, but declining profits and weak institutional sentiment weigh heavily. Short-term trend remains bearish with possible consolidation near support.