RHIM - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.8

📊 Chart Patterns: RHIM is trading slightly below its 50 DMA (459 ₹) and 200 DMA (478 ₹). Current price (456 ₹) indicates weakness, with the stock struggling to hold above short-term averages. The broader pattern shows lower highs and lower lows, suggesting bearish bias.

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

📉 RSI: 37.8 → near oversold territory, suggesting potential rebound if support holds.

📉 MACD: -7.55 → bearish crossover, confirming negative momentum.

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

📊 Volume Trends: Current volume (44,888) is significantly lower than 1-week average (94,649) → weak participation, showing lack of strong buying interest.

📍 Support Levels: 450 ₹, 430 ₹, and strong base near 376 ₹ (52-week low).

📍 Resistance Levels: 459 ₹ (DMA 50), 478 ₹ (DMA 200), and 500 ₹.

🔎 Trend: The stock is reversing downward with bearish signals. A breakdown below 450 ₹ could trigger further decline, while a rebound above 459–478 ₹ may signal short-term recovery.

Positive

• 📈 EPS at 8.74 ₹ supports valuation strength.
• 📊 Low debt-to-equity ratio (0.02) indicates strong financial stability.
• 📊 FII holdings slightly increased (+0.01%), showing marginal foreign investor confidence.

Limitation

• ⚠️ Price trading below both 50 DMA and 200 DMA → bearish technical setup.
• ⚠️ High P/E ratio (52.3) compared to industry PE (39.0) → valuation premium.
• ⚠️ Weak ROE (5.62%) and ROCE (7.71%) → poor capital efficiency.
• ⚠️ PEG ratio (-8.99) suggests negative earnings growth outlook.

Company Negative News

• 📉 Quarterly PAT declined from 46.5 Cr. to 41.3 Cr. (-15.4%).
• 📉 DII holdings decreased (-0.15%), showing reduced domestic investor confidence.
• 📉 Stock trading near lower half of 52-week range (46.7%).

Company Positive News

• 📈 Strong balance sheet with negligible debt (Debt-to-equity 0.02).
• 📊 Dividend yield of 0.55% provides modest income for investors.

Industry

• 🏭 Specialty materials sector PE at 39.0, lower than RHIM’s PE (52.3), suggesting overvaluation relative to peers.
• 📊 Industry supported by demand in construction and manufacturing, but facing margin pressures.

Conclusion

🔎 RHIM is showing bearish reversal signals with price below key moving averages, weak RSI, and negative MACD. Optimal entry zone lies near 440–450 ₹ if support holds, while exit/resistance zone is 478–500 ₹. Long-term investors should be cautious due to weak profitability and high valuation, while short-term traders may look for opportunities only on confirmed rebound above 459–478 ₹.