METROPOLIS - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.8

📉 Chart Patterns & Trend: METROPOLIS is trading at ₹1,886, below both its 50 DMA (₹1,952) and 200 DMA (₹1,928). This indicates a bearish reversal with weak momentum and declining trendlines. The stock is closer to its recent low of ₹1,315 than its high of ₹2,263, showing vulnerability.

📊 Moving Averages: Price below both short- and long-term averages confirms bearish sentiment. Key support lies near ₹1,850–₹1,880 and ₹1,315, while resistance is around ₹1,950–₹1,980.

📉 RSI: At 31.1, RSI is in the oversold zone, suggesting potential short-term bounce but overall weak momentum.

📉 MACD: Negative MACD (-18.3) signals bearish momentum, reinforcing the downtrend.

📉 Bollinger Bands: Price is near the lower band, indicating oversold conditions. A reflex move toward the mid-band (~₹1,930–₹1,950) is possible before facing resistance.

📊 Volume Trends: Current volume (38,987) is slightly above the weekly average (35,037), showing increased activity. However, higher volume during declines suggests selling pressure dominates.

🎯 Entry Zone: ₹1,850–₹1,880 (near support)

🚪 Exit Zone: ₹1,950–₹2,000 (near resistance)

Positive

• Quarterly PAT improved from ₹35.6 Cr. to ₹46.6 Cr., showing earnings growth.
• DII holding increased (+0.70%), reflecting domestic institutional support.
• EPS of ₹25.8 highlights profitability strength.
• Low debt-to-equity ratio (0.11) ensures financial stability.

Limitation

• Stock trading below both 50 DMA and 200 DMA indicates bearish momentum.
• High P/E (73.2) compared to industry PE (30.9) suggests overvaluation.
• PEG ratio (-5.24) highlights weak growth prospects relative to valuation.
• ROCE (13.4%) and ROE (10.5%) are moderate compared to peers.

Company Negative News

• Weak technical indicators (MACD negative, RSI oversold) suggest limited upside in near term.
• FII holding decreased (-0.31%), showing reduced foreign investor confidence.

Company Positive News

• Profit growth quarter-on-quarter despite overall weakness in momentum.
• Strong domestic institutional support with DII holdings rising.
• Debt-light balance sheet supports long-term stability.

Industry

• Industry PE at 30.9 is much lower than METROPOLIS’s PE (73.2), suggesting premium valuation.
• Diagnostics and healthcare services sector benefits from rising demand but faces margin pressures.

Conclusion

📌 METROPOLIS is in a bearish reversal, trading below key moving averages with negative MACD and oversold RSI. Entry near ₹1,850–₹1,880 may offer short-term bounce potential, while resistance at ₹1,950–₹2,000 limits upside. Despite earnings growth and strong institutional support, high valuation and weak momentum warrant caution in the near term.