MRF - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.4
| Stock Code | MRF | Market Cap | 56,107 Cr. | Current Price | 1,32,295 ₹ | High / Low | 1,63,600 ₹ |
| Stock P/E | 31.2 | Book Value | 45,019 ₹ | Dividend Yield | 0.18 % | ROCE | 13.8 % |
| ROE | 10.5 % | Face Value | 10.0 ₹ | DMA 50 | 1,46,562 ₹ | DMA 200 | 1,44,650 ₹ |
| Chg in FII Hold | -0.09 % | Chg in DII Hold | 0.12 % | PAT Qtr | 512 Cr. | PAT Prev Qtr | 484 Cr. |
| RSI | 24.2 | MACD | -4,949 | Volume | 3,503 | Avg Vol 1Wk | 9,245 |
| Low price | 1,00,500 ₹ | High price | 1,63,600 ₹ | PEG Ratio | 0.61 | Debt to equity | 0.11 |
| 52w Index | 50.4 % | Qtr Profit Var | 12.3 % | EPS | 4,245 ₹ | Industry PE | 28.3 |
📊 Chart Patterns & Trend: MRF is trading at 1,32,295 ₹, well below its 50 DMA (1,46,562 ₹) and 200 DMA (1,44,650 ₹). This indicates a bearish consolidation with strong downward bias. The stock is far from its 52-week high (1,63,600 ₹) and closer to its low (1,00,500 ₹), reflecting weak sentiment.
📈 RSI: At 24.2, RSI is in oversold territory, suggesting potential for a short-term rebound but overall weak momentum.
📉 MACD: Deeply negative at -4,949, confirming strong bearish momentum and lack of bullish crossover signals.
📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible mean reversion.
📊 Volume Trends: Current volume (3,503) is significantly lower than average weekly volume (9,245), showing weak participation and lack of conviction in recent moves.
🎯 Entry Zone: 1,28,000–1,31,000 ₹ (near support and oversold RSI).
🎯 Exit Zone: 1,45,000–1,47,000 ₹ (near 50 DMA resistance).
Positive
- Market cap of 56,107 Cr. reflects strong industry presence.
- Quarterly PAT improved to 512 Cr. from 484 Cr., showing sequential growth.
- DII holdings increased by 0.12%, indicating domestic institutional confidence.
- EPS at 4,245 ₹ reflects strong earnings power.
- Debt-to-equity ratio at 0.11 shows low leverage.
Limitation
- Stock trading below both 50 DMA and 200 DMA, showing weak momentum.
- FII holdings decreased (-0.09%), showing reduced foreign investor confidence.
- ROCE (13.8%) and ROE (10.5%) are moderate, not exceptional for long-term compounding.
- Dividend yield is low at 0.18%, offering limited income return.
- RSI and MACD both indicate strong bearish undertone.
Company Negative News
- FII stake reduction highlights declining foreign investor confidence.
- Stock trading near oversold levels, reflecting weak sentiment.
Company Positive News
- Quarterly PAT growth of 12.3% indicates operational improvement.
- DII stake increase reflects domestic investor confidence.
- EPS growth supports long-term earnings visibility.
Industry
- Tyre sector trading at industry PE of 28.3, making MRF slightly overvalued at P/E of 31.2.
- Sector outlook remains cyclical, tied to automotive demand and raw material costs.
Conclusion
⚖️ MRF is in a bearish consolidation phase with oversold RSI and strongly negative MACD. Entry near 1,28,000–1,31,000 ₹ offers margin of safety, while exits around 1,45,000–1,47,000 ₹ provide profit-taking opportunities. Long-term investors should be cautious due to moderate ROE/ROCE and weak momentum, while short-term traders may exploit oversold conditions for swing trades.
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