PATANJALI FOODS LTD – Daily Chart AnalysisPATANJALI FOODS LTD – Daily Chart Analysis
Price as on June 6, 2025: INR 1,681.60
Technical View with Fundamental Context
Price Structure Analysis:
Patanjali Foods appears to be consolidating within a large descending wedge pattern. The recent price action shows a bounce from the lower wedge boundary, where multiple liquidity points have been swept, creating a potential accumulation zone.
Current Support Zone: INR 1,650 to 1,698 (marked by green horizontal levels)
Immediate Resistance: INR 1,783 (falling trendline and horizontal supply zone)
Breakout Targets:
INR 1,783 (near resistance)
INR 1,904 (midterm supply area)
INR 2,011 (swing high from previous uptrend)
If the price sustains above 1,698 and gains volume strength, it may attempt a move toward the 1,783 zone, followed by a breakout targeting 1,904 and beyond.
Some Observations
Liquidity Grab Confirmed:
Price action shows a wick piercing below a crucial horizontal demand level. This sweep of stop-losses beneath support is often followed by a reversal, suggesting institutional accumulation.
Wedge Compression:
Multiple lower highs and relatively stable lows form a classic descending wedge pattern, which statistically favors bullish breakouts.
Measured Move Setup:
From the current level to the wedge breakout target at INR 1,783 represents a 5.69 percent move. Beyond that, the extended upside toward INR 2,011 offers a potential of over 10 percent.
Fundamentals Highlights:
Operates under strong brand equity with wide rural and urban penetration.
Strategic backward integration in oilseed procurement and processing.
Plays a major role in import substitution for edible oils, supported by government policies.
Recent Developments:
Restructuring and synergy with other Patanjali Group entities is ongoing.
Expansion into high-margin wellness and health products.
Strong demand trends seen in packaged foods and nutraceuticals.
Risks:
Vulnerability to global edible oil prices and supply chains.
High promoter holding under regulatory scrutiny can impact investor sentiment.
Positives:
Focus on indigenous production and Atmanirbhar Bharat themes.
Consistent demand for essentials even in weaker market cycles.
Debt reduction in recent quarters shows improvement in balance sheet strength.
Patanjali Foods is currently at a crucial technical zone. With signs of smart money accumulation and supportive fundamentals, the script has a fair probability of attempting a bullish breakout in the coming weeks. However, it must sustain above 1,698 and clear 1,783 with conviction for a confirmed uptrend.
Traders should watch volume confirmation and broader FMCG sentiment. Investors may look for dips near the 1,650 zone with a medium-term perspective.
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Disclaimer: This post is for educational purposes only and should not be considered a buy/sell recommendation.
