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RCF - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.8

Last Updated Time : 24 May 26, 10:34 pm

Technical Rating: 3.8

Stock Code RCF Market Cap 7,209 Cr. Current Price 130 ₹ High / Low 167 ₹
Stock P/E 18.1 Book Value 93.0 ₹ Dividend Yield 1.01 % ROCE 10.2 %
ROE 8.06 % Face Value 10.0 ₹ DMA 50 127 ₹ DMA 200 136 ₹
Chg in FII Hold 0.10 % Chg in DII Hold -0.02 % PAT Qtr 158 Cr. PAT Prev Qtr 81.4 Cr.
RSI 58.0 MACD -0.05 Volume 2,34,87,182 Avg Vol 1Wk 56,55,250
Low price 106 ₹ High price 167 ₹ PEG Ratio -0.76 Debt to equity 0.80
52w Index 40.5 % Qtr Profit Var 126 % EPS 7.79 ₹ Industry PE 16.2

📈 Trend Analysis: RCF is trading at ₹130, above the 50 DMA (₹127) but below the 200 DMA (₹136), indicating short-term strength but medium-term weakness. The stock has corrected from its 52-week high of ₹167 and is consolidating near current levels.

📊 RSI: At 58.0, RSI is neutral-to-positive, suggesting balanced momentum with room for further upside.

📉 MACD: Slightly negative MACD (-0.05) signals indecisive momentum, aligning with consolidation patterns.

📌 Bollinger Bands: Price is near the mid-band, signaling consolidation with potential breakout if volumes improve.

🔎 Volume Trends: Current volume (2,34,87,182) is significantly higher than the 1-week average (56,55,250), showing strong participation, which supports short-term moves.

💡 Momentum Signals: Short-term momentum is mildly positive. Optimal entry zone lies near ₹125–₹128 support levels. Exit/resistance zone is around ₹135–₹140, where selling pressure may emerge.

📌 Market Phase: The stock is consolidating with a bullish bias, holding above short-term averages but facing resistance from medium-term weakness.


Positive

  • 🚀 Quarterly PAT growth (₹158 Cr vs ₹81.4 Cr), up 126%.
  • 📈 EPS of ₹7.79 supports earnings visibility.
  • 💡 ROCE (10.2%) and ROE (8.06%) show moderate efficiency.
  • 🌍 FII holdings increased by 0.10%, showing foreign investor confidence.

Limitation

  • ⚠️ Current price below 200 DMA, signaling medium-term weakness.
  • 📉 PEG ratio (-0.76) reflects growth inconsistency.
  • 🔎 Debt-to-equity ratio (0.80) raises leverage concerns.

Company Negative News

  • 📉 DII holdings decreased by 0.02%, showing reduced domestic institutional interest.
  • ⚠️ Medium-term weakness as price remains below 200 DMA.

Company Positive News

  • 📈 Quarterly PAT growth highlights strong operational improvement.
  • 💡 EPS of ₹7.79 supports long-term earnings visibility.
  • 🌍 FII inflows reflect foreign confidence in the stock.

Industry

  • 🏭 Industry PE at 16.2, slightly lower than RCF’s 18.1, suggesting fair valuation.
  • 📊 Sector growth driven by fertilizer demand and government support for agriculture.

Conclusion

⚖️ RCF is consolidating with short-term strength but medium-term weakness due to stretched valuations and leverage concerns. Strong quarterly profit growth and foreign inflows provide support. Strategy: consider entry near ₹125–₹128 support zones and book profits around ₹135–₹140 resistance. The stock is consolidating with cautious optimism, awaiting stronger momentum for a sustained breakout.

Technical Analysis
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