ARE&M - IntraDay Trade Analysis with Live Signals

Last Updated Time : 20 Dec 25, 07:02 am

IntraDay Trade Rating: 3.3

📊 Analysis: ARE&M trades at ₹926, below both DMA 50 (₹961) and DMA 200 (₹1,009), reflecting short-term weakness. RSI at 36.4 indicates oversold conditions, while MACD (-12.2) confirms bearish momentum. Volume (3.07L vs 2.28L avg) is strong, supporting intraday liquidity. Fundamentals are decent with ROCE 16.8% and ROE 12.3%, but quarterly profit decline (-12.1%) and FII outflow (-1.42%) limit upside. Suitable for cautious intraday trades with tight risk management.

• 💹 Optimal Buy Price: ₹920–930 (near support zone)
• 🎯 Profit-Taking Levels: ₹945 (first resistance), ₹960 (next resistance)
• 🛡️ Stop-Loss: Below ₹910 (to protect against breakdown)
• ⏱️ Exit if Holding: Exit intraday if price fails to sustain above ₹920 or if RSI slips below 35 with MACD staying negative despite strong volume.

Positive

• ✅ Strong liquidity with volume above average (3.07L vs 2.28L).
• ✅ ROCE 16.8% and ROE 12.3% reflect decent efficiency.
• ✅ DII holding increased (+2.24%), showing domestic institutional support.
• ✅ Low debt-to-equity 0.04 ensures financial stability.

Limitation

• ⚠️ Price below DMA 50 & 200, confirming bearish trend.
• ⚠️ RSI near oversold (36.4), limiting momentum strength.
• ⚠️ MACD negative (-12.2), confirming bearish sentiment.
• ⚠️ Quarterly profit decline (-12.1%) weakens fundamentals.

Company Negative News

• ❌ PAT decline from ₹194 Cr. to ₹212 Cr. with negative variance.
• ❌ FII holding reduced (-1.42%), showing foreign investor caution.

Company Positive News

• 🌟 Dividend yield 1.15% supports investor sentiment.
• 🌟 DII holding increased, showing domestic confidence.

Industry

• 🏗️ Industry PE at 30.0 vs ARE&M PE 21.0 shows relative undervaluation.
• 🏗️ Sector outlook remains stable, offering defensive opportunities despite short-term weakness.

Conclusion

📌 ARE&M is a moderate intraday candidate with strong liquidity but weak technicals. Traders may attempt scalps near ₹920–930 with profit exits around ₹945–960, while maintaining a disciplined stop-loss below ₹910.

Would you like me to extend this into a sector basket overlay with peer benchmarking so you can compare ARE&M against other power and engineering stocks for intraday rotation opportunities?