NEWGEN - IntraDay Trade Analysis with Live Signals

Last Updated Time : 20 Dec 25, 07:03 am

IntraDay Trade Rating: 3.1

📊 Analysis: NEWGEN is trading at ₹830, below both DMA 50 (₹892) and DMA 200 (₹973), indicating short-term weakness. RSI at 36.3 shows near oversold conditions, while MACD (-19.9) remains negative, confirming bearish intraday bias. Volume (1.39 lakh) is below average (2.14 lakh), reflecting reduced participation. Despite strong fundamentals like ROCE (27.8%) and ROE (22.4%), valuation (P/E 38.1 vs industry PE 26.4) looks stretched. Intraday potential exists for cautious bounce trades but momentum remains weak.

💡 Optimal Buy Price: ₹825–₹830 (near support zone)

🎯 Profit-Taking Exit Levels: ₹845–₹855 (short-term bounce target)

🛑 Stop-Loss / Loss Protection: ₹815 (below immediate support)

⏱️ If Already Holding: Exit intraday if price fails to sustain above ₹825 or if RSI drops below 35 with MACD continuing negative. Consider booking profits if price approaches ₹845–₹855 with volume confirmation.

✅ Positive

• 📈 Strong ROCE at 27.8% and ROE at 22.4%
• 📊 EPS at ₹22.0 supports valuation strength
• 📈 Quarterly PAT improved to ₹76.7 Cr. vs ₹48.7 Cr. (+16.4%)
• 📉 Debt-to-equity ratio at 0.03 ensures financial stability
• 📊 DII holding increased by 0.12%, showing domestic investor support

⚠️ Limitation

• 📉 Price trading below DMA 50 and DMA 200 confirms weak trend
• 📊 RSI near oversold but momentum remains weak
• 📉 Valuation stretched with P/E 38.1 vs industry PE 26.4
• 📊 Volume below weekly average, showing reduced participation

🚨 Company Negative News

• 📉 FII holding reduced by -1.52%, showing foreign investor caution
• 📊 MACD negative (-19.9), confirming bearish bias

🌟 Company Positive News

• 📈 Quarterly profit growth (+16.4%) supports earnings momentum
• 📊 Strong efficiency ratios (ROCE and ROE above 20%)

🏭 Industry

• 📊 Industry PE at 26.4, lower than NEWGEN’s 38.1, suggesting overvaluation
• 💻 IT & software sector outlook tied to enterprise demand and digital transformation

📌 Conclusion

NEWGEN shows moderate intraday potential today. Fundamentals are strong with profit growth and efficiency ratios, but stretched valuation and weak intraday momentum limit upside. Traders may attempt entries near ₹825–₹830 with stop-loss at ₹815 and profit booking around ₹845–₹855. Conservative traders should wait for stronger momentum confirmation before entering intraday positions.

Would you like me to extend this into a peer benchmarking overlay comparing NEWGEN with other IT & software sector stocks, so you can identify relative intraday strength opportunities?