Granules India Shares: Technical Charts Hint At Trend Reversal, Says SEBI RA Deepak Pal

Granules India shares have fallen 7% over the last month; however, their technical charts are indicating a short-term trend reversal. 

SEBI-registered analyst Deepak Pal+ noted that on its daily chart, the stock had been trading below its 14 & 55-day Exponential Moving Average (EMA) since June 24th, indicating short-term weakness.  

Granules India stock is facing consistent resistance at its 55-day EMA on the daily chart and around its 14-day EMA on the weekly chart. However, he noted that the stock was taking strong support near the ₹475 level. 

On June 19th and 20th, the stock hit lows of around ₹479 and subsequently witnessed a reversal. Even on Thursday, the stock traded in a narrow range, opening at ₹492, making a high of ₹495, a low of ₹487.45, and closing at ₹490.15.  

On the daily chart, Pal flagged that a triangle pattern is forming, and both technical indicators – Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) – are indicating a short-term positive trend. 

He suggested that traders can consider fresh entries with the stock trading near ₹490, with a stop loss of ₹475. If the stock sustains this support and breaks above the resistance zone, it could quickly move towards ₹525 levels in the near term.

Fundamentally, Granules India holds a dominant position in key products such as Paracetamol and Ibuprofen, and is steadily expanding its portfolio of high-margin, complex generics. The company’s regulatory approvals position it well for future growth, and improving debt profile highlights its financial strength. 

Despite near-term challenges, it remains a fundamentally sound player in the Indian pharmaceutical sector, with promising long-term growth potential, he concluded.

Data on Stocktwits shows that retail sentiment is ‘bullish’ on this counter.

Granules India shares have fallen 17% year-to-date (YTD).

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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