USHAMART - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 4.0

📈 USHAMART is currently in a trending phase with bullish momentum supported by strong moving averages and MACD signals. Entry zone: ₹440–₹460; exit zone: ₹475–₹485. Watch for volume confirmation and RSI movement toward 65 for sustained upside.

📊 Technical Overview

• Price Action: Trading at ₹460, above both 50-DMA (₹432) and 200-DMA (₹378), confirming bullish trend continuation.
• RSI (57.3): Moderately bullish, indicating upward momentum with room before overbought territory.
• MACD (8.50): Strong bullish crossover, confirming positive momentum.
• Bollinger Bands: Price near upper band, suggesting strength but possible short-term resistance.
• Volume: Slightly below 1-week average, indicating moderate participation and potential for breakout with volume spike.
• Support Zones: ₹440 (S1), ₹432 (S2)
• Resistance Zones: ₹475 (R1), ₹485 (R2)

✅ Positive

• Strong ROCE (26.6%) and ROE (21.1%) reflect excellent operational efficiency.
• EPS of ₹9.98 supports valuation and earnings visibility.
• Price trading above key moving averages confirms bullish trend.
• DII holdings increased (+1.23%), showing strong domestic institutional support.

⚠️ Limitation

• Stock P/E (46.1) is significantly higher than industry average (24.0), indicating premium valuation.
• PEG ratio of 2.63 suggests overvaluation relative to growth.
• Volume slightly below average, limiting breakout conviction.
• Dividend yield of 0.66% is modest for income-focused investors.

📉 Company Negative News

• FII holdings declined (-0.15%), reflecting cautious foreign sentiment.
• Quarterly PAT declined from ₹78.2 Cr. to ₹70.9 Cr., a 2.92% drop.

📈 Company Positive News

• Strong technical setup with MACD and RSI supporting bullish momentum.
• Stock has gained ~86.5% over the past year, reflecting strong investor confidence.

🏢 Industry

• Industrial manufacturing sector benefits from infrastructure growth and capital goods demand.
• Industry P/E of 24.0 reflects moderate valuation across peers.

🧭 Conclusion

• USHAMART is trending upward with bullish technical indicators and strong long-term support.
• Entry zone: ₹440–₹460; exit zone: ₹475–₹485 for short-term swing trades.
• Long-term investors may accumulate on dips, supported by strong fundamentals and sector tailwinds.