ARE&M - IntraDay Trade Analysis with Live Signals

Last Updated Time : 05 Nov 25, 7:43 am

IntraDay Trade Rating: 3.9

⚡ ARE&M shows solid fundamentals, improving volume, and technical support near key levels — a moderately favorable candidate for intraday trading.

📈 Positive

• 🔹 MACD at 0.56: Bullish crossover suggests early signs of upward momentum.
• 🔹 Volume Surge: Current volume (4.25L) is above 1-week average (3.36L), indicating rising intraday interest.
• 🔹 Price Near 50 DMA: Current price (₹993) is just below 50 DMA (₹1,000), offering a potential bounce zone.
• 🔹 Strong ROCE & ROE: ROCE at 16.8% and ROE at 12.3% reflect efficient capital use.
• 🔹 Low Debt: Debt-to-equity ratio of 0.04 indicates financial stability.

⚠️ Limitation

• 🔸 RSI at 43.9: Below neutral, showing weak momentum.
• 🔸 Price Below 200 DMA: Current price is under 200 DMA (₹1,031), indicating long-term resistance.
• 🔸 FII Outflow: Foreign institutional holdings declined by 1.42%.
• 🔸 Quarterly Profit Dip: PAT fell 20.7% QoQ despite absolute growth.

🚫 Company Negative News

• 📉 Profitability Pressure: Analysts cite margin compression due to input cost volatility and delayed project execution.

✅ Company Positive News

• 🔋 Renewable Expansion: Continued investment in solar and wind assets across multiple states.
• 📈 EPS of ₹49.9: Reflects strong earnings base.
• 🏦 DII Confidence: Domestic institutional holdings increased by 2.24%.

🏦 Industry

• 🌞 Sector: Renewable Energy & Infrastructure.
• 📊 Industry PE: 32.8, higher than ARE&M’s PE of 21.8, suggesting undervaluation.

📌 Conclusion

• 📉 Intraday Setup: Technical support and volume favor bounce trades; ideal for short-term momentum plays.
• 💰 Optimal Buy Price: ₹985–₹990 (near support zone).
• 📈 Profit Exit Level: ₹1,010–₹1,020 (short-term resistance zone).
• 🛑 Stop Loss: ₹975 (below recent support).
• ⏳ If Holding: Exit if RSI dips below 42 or price fails to hold above ₹990 intraday.

I can also compare ARE&M’s intraday setup with other renewable energy stocks showing similar technical patterns today.