Cargosol Logistics Ltd: Technical+ fundamental breakdownTechnical + fundamental breakdown for Cargosol Logistics Ltd., along with student learning points
- Technical & Chart Pattern Analysis
Timeframe Used: Weekly Chart
Trend: Stock has been in a prolonged downtrend from its highs (120+), but formed a base near 12.90 (March 2025) and gave a strong reversal candle.
Candlestick Pattern: Recent bullish engulfing + long lower wick near support shows accumulation and reversal signs.
Channel Breakout: Price has broken out of the falling channel, signaling possible trend reversal.
Support Levels
-20.0 (immediate, psychological round number support)
-16.0 (strong weekly support, retested multiple times)
-12.9 (major bottom, long-term support)
Resistance Levels
29.0 (near-term resistance, supply zone)
36.5 (medium-term target, previous swing high)
53.3 (major resistance, strong profit-booking zone)
Perfect Entry Points
-Accumulation Zone: 16-20 range (ideal for swing traders & positional investors).
-Breakout Entry: If price sustains above 29 with volume, next swing target can be 36-53.
Swing Analysis
-Current upswing from 12.9 - 24 is +85% already.
-Possible retracement to 20 before next leg up.
-If 29 breaks, swing rally towards 36-53 is likely.
Fundamental Comparison (Logistics Sector Peers)
(Values are approximate; students should cross-verify with latest financials)
Company P/E Ratio Debt/Equity ROE (%) Profit Margin Market Cap
Cargosol Logistics 18-20 Low (<0.5) 12-15% 5-6% Small Cap
TCI Express 40+ 0 (Debt-free) 25% 8-10% Mid Cap
Blue Dart Express 60+ 0.7 20% 7-8% Large Cap
Gati Ltd. Negative P/E High Debt -ve ROE Weak Mid Cap
Learning:
-Compared to peers, Cargosol is undervalued (low P/E, decent growth).
-Debt levels are manageable (safer than Gati).
-Still riskier than established players (TCI Express, Blue Dart).
Key Learnings for Students
1. Trendlines & Channels Matter: Downtrend breakout often signals big moves.
2. Candlestick Confirmation: Look for engulfing, hammer, or long-wick candles near support.
3. Volume = Strength: Always confirm breakouts with strong volumes.
4. Fundamentals First:
Check P/E, Debt/Equity, ROE, Margins before investing.
Compare with industry peers.
5. Risk Management: Small caps are volatile, so position sizing is critical.
👉Disclaimer:
This analysis is for educational purposes only. Stock market investments are subject to risks. Do your own research or consult a financial advisor before investing.
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