MEDANTA - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.6

📊 Chart Patterns & Trend: MEDANTA is trading below both its 50 DMA (1,234 ₹) and 200 DMA (1,248 ₹), showing short-term weakness. Support lies around 1,150–1,160 ₹, while resistance is seen near 1,230–1,250 ₹. The stock is in a bearish reversal phase with oversold signals emerging.

📈 Moving Averages: Current price (1,171 ₹) is below both 50 DMA and 200 DMA, indicating bearish sentiment in the short-to-medium term.

📉 RSI: At 36.7, RSI suggests oversold conditions, signaling potential accumulation zones.

📉 MACD: Strongly negative (-30.9) reflects bearish momentum, suggesting caution until a crossover occurs.

📊 Bollinger Bands: Price is near the lower band, implying limited downside and potential rebound if demand picks up.

📊 Volume Trends: Current volume (1.99 lakh) is above the 1-week average (1.54 lakh), showing increased participation despite weakness.

🎯 Entry Zone: 1,150–1,160 ₹ (near support and oversold RSI)

🎯 Exit Zone: 1,230–1,250 ₹ (near resistance and upper band)

Positive

• Strong ROCE (19.6%) and ROE (15.2%) highlight efficient capital usage.
• Debt-to-equity ratio at 0.07 ensures financial stability.
• DII holdings increased by 0.77%, reflecting domestic institutional support.
• Quarterly PAT at 128 Cr. remains strong despite slight decline.

Limitation

• High P/E ratio (60.0) compared to industry average (51.8) suggests overvaluation.
• Dividend yield at 0.04% provides minimal income appeal.
• Stock trading below both 50 DMA and 200 DMA shows technical weakness.
• PEG ratio (1.90) indicates valuation is stretched relative to growth.

Company Negative News

• FII holdings decreased by 0.13%, showing reduced foreign investor confidence.
• Quarterly PAT declined from 137 Cr. to 128 Cr., reflecting earnings pressure.

Company Positive News

• Quarterly profit variation at 22.6% highlights strong earnings growth year-on-year.
• DII inflows (+0.77%) reflect strong domestic institutional confidence.
• 52-week performance index at 38.2% shows resilience compared to broader market.

Industry

• Industry P/E at 51.8 indicates sector is moderately valued compared to MEDANTA’s higher valuation.
• Healthcare sector demand expected to remain strong with rising medical services and hospital expansion.

Conclusion

⚖️ MEDANTA is in a bearish reversal phase with oversold RSI and strong negative MACD. Entry near 1,150–1,160 ₹ offers favorable risk-reward, while exits around 1,230–1,250 ₹ are optimal. Watch for MACD crossover and volume recovery to confirm rebound signals. Strong fundamentals and DII support provide stability despite valuation concerns.