TORNTPHARM - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.0

📈 Technical Analysis

• Chart Patterns: TORNTPHARM is trading close to its 52-week high (3,800 ₹ vs 3,882 ₹), showing strong bullish momentum but facing resistance at the upper range.
• Moving Averages: Current price (3,800 ₹) is above both 50 DMA (3,704 ₹) and 200 DMA (3,494 ₹), confirming a strong uptrend.
• RSI: At 52.8, RSI indicates healthy momentum, neither overbought nor oversold.
• MACD: Positive at 21.6, supporting bullish continuation.
• Bollinger Bands: Price near upper band, suggesting strength but limited upside before consolidation.
• Volume Trends: Current volume (1.26L) is slightly below average weekly volume (1.45L), showing moderate participation.

🎯 Momentum & Trade Zones

• Support Levels: 3,704 ₹ (50 DMA), 3,494 ₹ (200 DMA), and strong support at 3,400 ₹.
• Resistance Levels: 3,850–3,882 ₹ zone is a strong resistance.
• Entry Zone: Accumulate near 3,700–3,750 ₹ on dips.
• Exit Zone: Profit booking suggested near 3,850–3,880 ₹.
• Trend: Stock is trending upward with strong momentum, but may consolidate near resistance.

✅ Positive

• Strong ROCE (27.8%) and ROE (26.2%).
• EPS at 62.3 ₹ reflects solid earnings base.
• Quarterly profit variation at +31.8% shows strong growth momentum.
• DII holding increased by 0.63%, reflecting domestic institutional support.
• Debt-to-equity ratio at 0.25, showing manageable leverage.

⚠️ Limitation

• High P/E ratio (60.2) compared to industry average (30.6), suggesting overvaluation.
• PEG ratio at 2.48 indicates expensive valuation relative to growth.
• Dividend yield at only 0.85%, offering limited shareholder return.
• Volume slightly below average, showing reduced investor participation.

📉 Company Negative News

• FII holding reduced by -0.17%, showing weaker foreign investor confidence.

📊 Company Positive News

• Quarterly PAT improved from 551 Cr. to 606 Cr.
• DII holding increased by 0.63%, showing domestic support.
• Stock trading above key moving averages, reflecting technical strength.

🏭 Industry

• Industry P/E at 30.6, much lower than TORNTPHARM’s 60.2, suggesting premium valuation.
• Pharma sector outlook remains strong with consistent demand, though valuations are stretched.

📝 Conclusion

• TORNTPHARM is in a bullish uptrend, trading near its 52-week high.
• Short-term momentum is strong, but valuations are stretched and resistance is near.
• Best strategy: accumulate near 3,700–3,750 ₹ and book profits near 3,850–3,880 ₹.
• Medium-term outlook remains positive; breakout above 3,882 ₹ could lead to new highs.