RCF - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.1

📊 Chart Patterns: RCF is trading below both its 50 DMA (144 ₹) and 200 DMA (150 ₹). Current price (139 ₹) reflects short-term weakness after a decline from its 52-week high (184 ₹). The broader pattern shows consolidation with bearish bias.

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

📉 RSI: 42.3 → weak momentum, close to oversold territory, suggesting possible rebound if support holds.

📉 MACD: -2.05 → bearish crossover, confirming negative momentum.

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

📊 Volume Trends: Current volume (6,75,991) is significantly lower than 1-week average (16,10,085) → weak participation, showing lack of strong buying interest.

📍 Support Levels: 135 ₹, 125 ₹, and strong base near 108 ₹ (52-week low).

📍 Resistance Levels: 144 ₹ (DMA 50), 150 ₹ (DMA 200), and 160 ₹.

🔎 Trend: The stock is consolidating between 135–144 ₹ with bearish bias. A breakdown below 135 ₹ could trigger reversal toward 125–108 ₹, while a breakout above 144–150 ₹ may lead to short-term recovery momentum.

Positive

• 📈 Quarterly PAT improved from 54.1 Cr. to 106 Cr. (+95%).
• 📊 EPS at 5.66 ₹ supports earnings strength.
• 📊 Dividend yield of 0.96% provides modest income for investors.
• 📊 Marginal increase in FII (+0.03%) and DII (+0.02%) holdings shows institutional support.

Limitation

• ⚠️ Price trading below both 50 DMA and 200 DMA → bearish technical setup.
• ⚠️ PEG ratio (-0.91) suggests weak earnings growth outlook.
• ⚠️ ROE (5.00%) and ROCE (7.47%) indicate poor capital efficiency.
• ⚠️ RSI weak and MACD negative, limiting upside potential.

Company Negative News

• 📉 Stock trading near lower half of 52-week range (40.4%).
• 📉 Weak technical signals (MACD negative, RSI near oversold).

Company Positive News

• 📈 Quarterly profit growth (+34.5% YoY).
• 📊 EPS improvement and dividend yield provide investor support.

Industry

• ⚗️ Fertilizer and chemicals sector PE at 20.3, lower than RCF’s PE (24.8), suggesting valuation premium.
• 📊 Industry supported by government subsidies and agricultural demand cycles.

Conclusion

🔎 RCF is consolidating with bearish short-term signals (RSI weak, MACD negative, price below DMAs). Optimal entry zone lies near 135–139 ₹ if support holds, while exit/resistance zone is 144–150 ₹. Long-term investors may find value in dividend yield and profit growth, but short-term traders should remain cautious until a clear breakout above 144–150 ₹ confirms recovery momentum.