USHAMART - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | USHAMART | Market Cap | 12,461 Cr. | Current Price | 409 ₹ | High / Low | 498 ₹ |
| Stock P/E | 37.7 | Book Value | 52.2 ₹ | Dividend Yield | 0.73 % | ROCE | 26.6 % |
| ROE | 21.1 % | Face Value | 1.00 ₹ | DMA 50 | 433 ₹ | DMA 200 | 406 ₹ |
| Chg in FII Hold | 0.48 % | Chg in DII Hold | 1.82 % | PAT Qtr | 84.0 Cr. | PAT Prev Qtr | 97.3 Cr. |
| RSI | 36.1 | MACD | -9.77 | Volume | 4,51,387 | Avg Vol 1Wk | 4,98,335 |
| Low price | 279 ₹ | High price | 498 ₹ | PEG Ratio | 2.15 | Debt to equity | 0.03 |
| 52w Index | 59.5 % | Qtr Profit Var | 8.99 % | EPS | 9.94 ₹ | Industry PE | 18.7 |
📊 Chart Patterns & Trend: The stock is trading below its 50 DMA (433 ₹) but slightly above its 200 DMA (406 ₹). This suggests near-term weakness but long-term support. Price action indicates consolidation between 400–433 ₹, with strong support at 390–400 ₹ and resistance near 433–450 ₹.
📈 Moving Averages: Current price (409 ₹) is below the 50 DMA but above the 200 DMA, showing mixed signals. Sustained move above 433 ₹ would confirm bullish reversal.
📉 RSI: At 36.1, RSI is approaching oversold territory, suggesting potential rebound if buying interest emerges.
📉 MACD: Negative at -9.77, confirming bearish momentum in the short term.
📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible bounce from support zones.
📊 Volume Trends: Current volume (4,51,387) is slightly below the 1-week average (4,98,335), showing reduced participation and weak momentum.
🎯 Entry Zone: 390–405 ₹ (near support, risk-managed entry).
🎯 Exit Zone: 433–450 ₹ (resistance zone, profit booking advisable).
📌 Momentum Signal: Weak short-term momentum, consolidation phase with potential reversal if price sustains above 433 ₹.
Positive
- Strong ROCE (26.6%) and ROE (21.1%) highlight efficient capital use.
- Low debt-to-equity ratio (0.03) ensures financial stability.
- Quarterly profit variation (+8.99%) indicates improving earnings trend.
- FII (+0.48%) and DII (+1.82%) holdings have increased, showing investor confidence.
Limitation
- High P/E (37.7) compared to industry average (18.7) suggests overvaluation.
- PEG ratio of 2.15 indicates growth is priced expensively.
- Recent PAT decline from 97.3 Cr. to 84 Cr. shows short-term earnings pressure.
Company Negative News
- Quarterly PAT dropped sequentially, reflecting margin pressure.
Company Positive News
- Strong institutional support with rising FII and DII holdings.
- Healthy ROCE and ROE demonstrate operational efficiency.
Industry
- Industry P/E at 18.7 indicates sector is cheaper compared to the company.
- 52-week index return of 59.5% shows strong sector momentum.
Conclusion
⚖️ USHAMART is consolidating with weak short-term momentum but strong long-term fundamentals. Entry near 390–405 ₹ offers a favorable risk-reward setup, while exits should be considered around 433–450 ₹. A sustained breakout above 433 ₹ could trigger trend reversal. Fundamentally robust, but technically cautious in the near term.
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