PATANJALI - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.8

📊 Technical Analysis

• Chart Patterns: Stock is trading close to support (521 ₹) with resistance around 583 ₹ (200 DMA).
• Moving Averages: Current price (560 ₹) is slightly below 50 DMA (568 ₹) and 200 DMA (583 ₹), indicating mild bearish bias.
• RSI: At 46.5, the stock is neutral — neither overbought nor oversold.
• MACD: Negative (-10.9), suggesting weak momentum and bearish crossover.
• Bollinger Bands: Price is near mid-band, pointing to consolidation with potential breakout.
• Volume Trends: Current volume (58,96,398) is lower than 1-week average (65,72,930), showing reduced participation.

📈 Momentum & Signals

• Short-term Momentum: Neutral to mildly bearish due to MACD weakness and price below DMA levels.
• Entry Zone: 540–555 ₹ (near support).
• Exit Zone: 580–610 ₹ (resistance at DMA levels).
• Trend Status: Currently consolidating between support and resistance zones.

✅ Positive

• Quarterly PAT surged from 180 Cr. to 517 Cr. (+67.2%).
• EPS of 13.1 ₹ supports earnings visibility.
• ROCE (15.6%) and ROE (12.1%) show decent returns.
• DII holdings increased (+0.63%), showing domestic investor confidence.

⚠️ Limitation

• Stock trading below both 50 DMA and 200 DMA.
• High P/E ratio (42.7) compared to industry PE (26.3), indicating premium valuation.
• PEG ratio of 2.46 suggests expensive valuation relative to growth.
• FII holdings decreased (-0.75%).

📉 Company Negative News

• Stock has corrected from 52-week high of 671 ₹.
• Valuation remains stretched compared to industry peers.

📈 Company Positive News

• Quarterly profits improved significantly (+67.2%).
• DII holdings increased, showing domestic support.
• Strong fundamentals with consistent profitability and moderate leverage (Debt-to-equity: 0.24).

🏭 Industry

• Industry PE is 26.3, lower than PATANJALI’s PE of 42.7, highlighting premium valuation.
• Sector growth supported by FMCG demand and brand strength in consumer goods.

📝 Conclusion

• PATANJALI is fundamentally strong but technically consolidating with mild bearish signals.
• Oversold support levels (521 ₹) provide accumulation opportunity, while resistance lies near 583–610 ₹.
• Best strategy: Accumulate near 540–555 ₹ and book profits around 580–610 ₹.
• Overall trend: Consolidation with cautious outlook due to stretched valuations.