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TORNTPHARM - Technical Analysis with Chart Patterns & Indicators

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Rating: 4

Last Updated Time : 02 Feb 26, 10:12 am

Technical Rating: 4.0

Stock Code TORNTPHARM Market Cap 1,35,316 Cr. Current Price 3,997 ₹ High / Low 4,125 ₹
Stock P/E 63.4 Book Value 250 ₹ Dividend Yield 0.80 % ROCE 27.8 %
ROE 26.2 % Face Value 5.00 ₹ DMA 50 3,871 ₹ DMA 200 3,605 ₹
Chg in FII Hold 0.21 % Chg in DII Hold -0.12 % PAT Qtr 606 Cr. PAT Prev Qtr 551 Cr.
RSI 55.8 MACD 34.1 Volume 1,29,205 Avg Vol 1Wk 3,09,844
Low price 2,886 ₹ High price 4,125 ₹ PEG Ratio 2.61 Debt to equity 0.25
52w Index 89.7 % Qtr Profit Var 31.8 % EPS 62.3 ₹ Industry PE 29.0

📊 Chart Patterns: TORNTPHARM is trading at 3,997 ₹, close to its 52-week high (4,125 ₹). The price is above both 50 DMA (3,871 ₹) and 200 DMA (3,605 ₹), confirming strong bullish momentum and trend continuation.

📈 Moving Averages: Current price is comfortably above both short-term and long-term averages. The 50 DMA is above the 200 DMA, signaling a bullish crossover and sustained uptrend.

📉 RSI: At 55.8, RSI indicates moderate strength, leaning bullish but not yet overbought.

📈 MACD: Positive at 34.1, showing bullish divergence and strong buying signals.

📊 Bollinger Bands: Price is near the upper band, suggesting strong buying interest but also caution for possible short-term pullback.

📊 Volume Trends: Current volume (1.29 lakh) is lower than average weekly volume (3.09 lakh), indicating reduced participation despite price strength.

📌 Momentum Signals: Short-term momentum is bullish. Support lies around 3,870–3,900 ₹, while resistance is near 4,100–4,125 ₹.

🎯 Entry Zone: 3,880–3,920 ₹ (near 50 DMA support).

🎯 Exit Zone: 4,100–4,125 ₹ (near 52-week high resistance).

🔎 Trend Status: The stock is trending upward with strong bullish signals.


Positive

  • EPS of 62.3 ₹ indicates strong profitability.
  • ROCE (27.8%) and ROE (26.2%) reflect excellent capital efficiency.
  • Quarterly PAT improved from 551 Cr. to 606 Cr. (31.8% growth).
  • FII holdings increased by 0.21%, showing foreign investor confidence.

Limitation

  • High P/E ratio (63.4) compared to industry PE (29.0) suggests overvaluation risk.
  • PEG ratio of 2.61 signals expensive valuation relative to growth.
  • Dividend yield of 0.80% is modest.
  • Volume participation is lower than average, indicating cautious sentiment.

Company Negative News

  • DII holdings decreased by -0.12%, showing reduced domestic institutional support.
  • Stock price is near resistance, raising risk of short-term pullback.

Company Positive News

  • Quarterly PAT growth signals improving operational efficiency.
  • FII holdings increased, reflecting foreign investor interest.

Industry

  • Industry PE at 29.0 suggests sector trades at lower valuations compared to TORNTPHARM’s high P/E.
  • Pharmaceutical sector remains resilient with long-term demand outlook.

Conclusion

🚀 TORNTPHARM is trending upward with strong bullish technical indicators, supported by moving averages and MACD. Short-term traders may enter around 3,880–3,920 ₹ with targets near 4,100–4,125 ₹. Long-term investors should be cautious of high valuations but can hold for continued sector growth and profitability.

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