RAYMOND - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.2

📊 Chart Patterns: Raymond is trading well below its 50 DMA (510 ₹) and 200 DMA (564 ₹). Current price (426 ₹) is near its 52-week low (421 ₹), showing strong bearish momentum and breakdown from previous support levels. The broader pattern indicates a steep downtrend.

📈 Moving Averages: Price < 50 DMA and < 200 DMA → bearish alignment, confirming weakness in both short-term and long-term trends.

📉 RSI: 22.0 → deep oversold territory, suggesting potential technical rebound but overall weak momentum.

📉 MACD: -24.9 → strong bearish crossover, confirming downward momentum.

📊 Bollinger Bands: Price hugging lower band, indicating oversold conditions but also risk of further downside.

📊 Volume Trends: Current volume (2,13,373) is lower than 1-week average (2,78,568) → weak participation, showing lack of strong buying interest.

📍 Support Levels: 421 ₹ (52-week low), 400 ₹, and 380 ₹.

📍 Resistance Levels: 450 ₹, 510 ₹ (DMA 50), and 564 ₹ (DMA 200).

🔎 Trend: The stock is reversing downward with strong bearish signals. A breakdown below 421 ₹ could trigger further decline, while a rebound above 450–510 ₹ may signal short-term recovery.

Positive

• 📊 EPS reported at 822 ₹, though distorted by accounting adjustments.
• 📊 Debt-free balance sheet (Debt-to-equity 0.00) provides financial stability.
• 📊 Marginal increase in foreign institutional participation in past quarters despite current weakness.

Limitation

• ⚠️ Price trading near 52-week low (1.51% of range) → weak sentiment.
• ⚠️ Very high P/E ratio (69.8) compared to industry PE (33.7) → overvaluation risk.
• ⚠️ Weak ROCE (1.17%) and distorted ROE (294%) → poor capital efficiency.
• ⚠️ RSI oversold and MACD strongly negative, limiting upside potential.

Company Negative News

• 📉 PAT turned negative (–2.85 Cr.) compared to 11.8 Cr. in the previous quarter.
• 📉 FII holdings declined (–0.18%) and DII holdings declined (–1.27%).
• 📉 Quarterly profit variation (–122%) highlights operational challenges.

Company Positive News

• 📊 Debt-free structure provides long-term financial resilience.
• 📊 EPS remains high due to accounting adjustments, though not reflective of true profitability.

Industry

• 👔 Textile and lifestyle sector PE at 33.7, much lower than Raymond’s PE (69.8), suggesting overvaluation relative to peers.
• 📊 Industry supported by consumer demand cycles but facing margin pressures.

Conclusion

🔎 Raymond is showing strong bearish reversal signals with price below key moving averages, RSI oversold, and MACD negative. Optimal entry zone lies near 420–430 ₹ only for high-risk traders looking for technical rebound. Exit/resistance zone is 450–510 ₹. Long-term investors should remain cautious due to weak profitability and extreme valuation, while short-term traders may attempt rebound trades only if price sustains above 450 ₹ with volume support.