NATCOPHARM - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

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Technical Rating: 3.4

Technical Analysis Summary

• Trend: Reversing from highs, showing bearish momentum
• Moving Averages: Price (₹820) is below both DMA 50 (₹847) and DMA 200 (₹937), indicating short-term and long-term weakness
• RSI (44.3): Weak momentum, approaching oversold territory
• MACD (-4.61): Bearish crossover, confirming downward pressure
• Bollinger Bands: Price near lower band, suggesting oversold conditions and possible support
• Volume: Above average (4.33L vs 3.46L), indicating active selling pressure

Entry & Exit Zones

• Support: ₹800 – ₹815 (recent base and psychological level)
• Resistance: ₹845 – ₹860 (DMA 50 and prior swing highs)
• Optimal Entry: ₹805 – ₹815 if RSI stabilizes and MACD flattens
• Exit Zone: ₹845 – ₹860 if price struggles near resistance

Positive

• Strong ROCE (31.8%) and ROE (27.5%) indicate operational efficiency
• Low P/E of 8.75 vs industry average of 33.1
• EPS of ₹93.7 and PEG ratio of 0.06 suggest undervaluation
• Low debt-to-equity ratio (0.04) supports financial stability

Limitation

• Price trading below key moving averages
• MACD and RSI indicate bearish momentum
• Quarterly profit variation of -27.1% may impact sentiment
• Decline in FII holding (-1.43%)

Company Negative News

• Concerns over pricing pressure and regulatory challenges in key markets

Company Positive News

• Strong domestic performance and pipeline of niche generics
• Positive DII sentiment (+0.06%) and stable earnings base

Industry

• NATCOPHARM operates in the pharmaceutical and specialty generics sector
• Peers include Sun Pharma, Dr. Reddy’s, and Aurobindo Pharma

Conclusion

NATCOPHARM is currently reversing from its highs with bearish technical indicators and weak momentum. While valuation and fundamentals remain attractive, short-term caution is warranted. Traders may consider entry near ₹805 with targets around ₹860, watching for RSI recovery and MACD stabilization.