MRF - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.7

📈 Chart Patterns & Trend: MRF is trading at ₹1,53,320, slightly below its 50 DMA (₹1,53,643) but above its 200 DMA (₹1,44,528). This suggests the stock is in a consolidation phase after a strong rally, with sideways movement near resistance levels.

📊 Moving Averages: Price above the 200 DMA indicates long-term bullishness, but hovering around the 50 DMA shows short-term indecision. Key support lies near ₹1,44,500 and resistance near ₹1,63,600.

📉 RSI: At 44.8, RSI is neutral, neither overbought nor oversold, suggesting limited momentum.

📉 MACD: Negative MACD (-818) signals weakening momentum, hinting at possible short-term correction.

📉 Bollinger Bands: Price is near the mid-band, indicating consolidation. A breakout above ₹1,55,000 could trigger bullish momentum, while a dip below ₹1,50,000 may signal weakness.

📊 Volume Trends: Current volume (4,746) is above the weekly average (3,206), showing increased activity but not yet strong enough to confirm a breakout.

🎯 Entry Zone: ₹1,50,000–₹1,52,000 (near support)

🚪 Exit Zone: ₹1,60,000–₹1,63,000 (near resistance/high)

Positive

• EPS of ₹4,245 reflects strong earnings power.
• PEG ratio of 0.71 suggests reasonable valuation relative to growth.
• Quarterly PAT growth (+12.3%) shows improving profitability.
• Stock trading above 200 DMA confirms long-term bullish trend.

Limitation

• High P/E (36.2) compared to industry PE (31.0) indicates premium valuation.
• Low dividend yield (0.15%) reduces attractiveness for income investors.
• ROCE (13.8%) and ROE (10.5%) are moderate compared to peers.

Company Negative News

• FII holding decreased (-0.40%), showing reduced foreign investor confidence.
• MACD turning negative signals weakening short-term momentum.

Company Positive News

• DII holding increased (+0.72%), reflecting stronger domestic institutional support.
• Consistent profit growth with PAT rising from ₹484 Cr. to ₹512 Cr.
• Strong brand presence and leadership in the tyre industry.

Industry

• Industry PE at 31.0 is slightly lower than MRF’s PE, suggesting premium pricing for market leadership.
• Automobile and tyre sector demand is cyclical, tied to vehicle sales and infrastructure growth.

Conclusion

📌 MRF is in a consolidation phase, trading near its 50 DMA with neutral RSI and negative MACD. Entry near ₹1,50,000–₹1,52,000 offers a favorable risk-reward, while resistance at ₹1,60,000–₹1,63,000 provides exit targets. Long-term fundamentals remain strong, but short-term momentum is weakening, suggesting cautious accumulation.