UPL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.9

📈 Technical Analysis

• Chart Patterns: UPL is trading close to its 52-week high (751 ₹ vs 776 ₹), showing strong recovery momentum but facing resistance near highs.
• Moving Averages: Current price (751 ₹) is above both 50 DMA (733 ₹) and 200 DMA (681 ₹), confirming bullish bias.
• RSI: At 50.0, RSI indicates neutral momentum, neither overbought nor oversold.
• MACD: Positive at 3.66, signaling short-term bullish continuation.
• Bollinger Bands: Price near upper band, suggesting strength but limited upside before consolidation.
• Volume Trends: Current volume (7.5L) is lower than average weekly volume (13.9L), showing reduced participation despite price strength.

🎯 Momentum & Trade Zones

• Support Levels: 733 ₹ (50 DMA), 681 ₹ (200 DMA), and strong support at 650 ₹.
• Resistance Levels: 760–776 ₹ zone is a strong resistance.
• Entry Zone: Accumulate near 730–740 ₹ on dips.
• Exit Zone: Profit booking suggested near 760–775 ₹.
• Trend: Stock is trending upward with strong momentum, but may consolidate near resistance.

✅ Positive

• Quarterly PAT surged from 122 Cr. to 416 Cr. (+823% variation).
• EPS at 37.0 ₹ reflects strong earnings base.
• FII holding increased by 2.11%, showing foreign investor confidence.
• Debt-to-equity ratio at 0.07, indicating very low leverage.

⚠️ Limitation

• High P/E ratio (58.6) compared to industry average (27.6), suggesting overvaluation.
• ROCE (1.26%) and ROE (8.20%) are weak, showing poor efficiency.
• PEG ratio at -4.85 indicates poor earnings growth relative to valuation.
• Volume lower than average, showing reduced investor participation.

📉 Company Negative News

• DII holding reduced by -0.92%, showing weaker domestic institutional confidence.
• Operational efficiency remains weak despite earnings surge.

📊 Company Positive News

• Quarterly profits improved significantly (+823%).
• FII holding increased by 2.11%, showing strong foreign support.
• Stock trading above key moving averages, reflecting technical strength.

🏭 Industry

• Industry P/E at 27.6, much lower than UPL’s 58.6, suggesting premium valuation.
• Agrochemicals sector outlook remains steady, but valuations are stretched.

📝 Conclusion

• UPL is in a bullish uptrend, trading near its 52-week high.
• Short-term momentum is positive, but valuations are stretched and resistance is near.
• Best strategy: accumulate near 730–740 ₹ and book profits near 760–775 ₹.
• Medium-term outlook cautiously positive; breakout above 776 ₹ needed for further upside.