NEWGEN - IntraDay Trade Analysis with Live Signals
Back to ListIntraDay Trade Rating: 3.2
| Stock Code | NEWGEN | Market Cap | 6,542 Cr. | Current Price | 460 ₹ | High / Low | 1,379 ₹ |
| Stock P/E | 21.4 | Book Value | 103 ₹ | Dividend Yield | 1.09 % | ROCE | 27.8 % |
| ROE | 22.4 % | Face Value | 10.0 ₹ | DMA 50 | 572 ₹ | DMA 200 | 802 ₹ |
| Chg in FII Hold | -0.28 % | Chg in DII Hold | 0.10 % | PAT Qtr | 79.8 Cr. | PAT Prev Qtr | 76.7 Cr. |
| RSI | 38.6 | MACD | -36.2 | Volume | 26,52,517 | Avg Vol 1Wk | 26,21,954 |
| Low price | 434 ₹ | High price | 1,379 ₹ | PEG Ratio | 0.94 | Debt to equity | 0.03 |
| 52w Index | 2.66 % | Qtr Profit Var | -4.72 % | EPS | 20.0 ₹ | Industry PE | 20.9 |
📊 Analysis: NEWGEN is trading at ₹460, well below its 50 DMA (₹572) and 200 DMA (₹802), reflecting strong bearish sentiment. RSI at 38.6 indicates oversold-to-weak momentum, while MACD (-36.2) confirms bearish bias. Intraday volume (26.5 lakh) is aligned with the 1-week average (26.2 lakh), showing stable participation. Fundamentals are decent with ROE 22.4% and ROCE 27.8%, but valuation is slightly stretched with P/E 21.4 vs industry 20.9. EPS of ₹20.0 supports earnings, though PAT declined marginally from ₹76.7 Cr. to ₹79.8 Cr. (-4.72%).
💰 Optimal Buy Price: Intraday entry may be considered near ₹455–460 if momentum stabilizes.
🎯 Exit Levels:
- Profit-taking: ₹470 – ₹478 (near-term resistance)
- Stop-loss: ₹450 (below intraday support)
⏱️ If Already Holding: Exit should be considered if price fails to hold above ₹455 or if RSI weakens further below 38 intraday. Watch for volume spikes near ₹470–478 to book profits.
Positive
- Strong ROCE (27.8%) and ROE (22.4%) indicate efficient capital use.
- EPS of ₹20.0 supports valuation strength.
- DII holding increased (+0.10%), showing domestic institutional support.
- PEG ratio of 0.94 suggests fair growth relative to valuation.
Limitation
- Trading well below both 50 DMA and 200 DMA reflects bearish sentiment.
- RSI (38.6) indicates weak momentum.
- MACD (-36.2) shows strong bearish bias.
Company Negative News
- Quarterly profit variation (-4.72%) shows earnings pressure.
- FII holding decreased (-0.28%), showing reduced foreign investor confidence.
Company Positive News
- PAT improved slightly from ₹76.7 Cr. to ₹79.8 Cr.
- 52-week index return of 2.66% reflects modest investor confidence.
Industry
- Industry PE at 20.9 is close to NEWGEN’s P/E (21.4), making valuation fair.
- IT software and digital transformation sector benefits from long-term demand growth but is sensitive to global tech cycles.
Conclusion
⚖️ NEWGEN shows weak short-term momentum with RSI near oversold levels and MACD strongly negative, but fundamentals remain supportive. Intraday traders may consider entries near ₹455–460 with profit targets around ₹470–478. A tight stop-loss at ₹450 is recommended. Conservative traders should wait for confirmation above ₹478 before fresh entries.
Would you like me to extend this into a peer benchmarking overlay comparing NEWGEN with Persistent Systems, Coforge, and Mphasis to highlight relative intraday strength and sector rotation opportunities within the IT services sector?