OLECTRA - IntraDay Trade Analysis with Live Signals

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

IntraDay Trade Rating: 2.8

📊 Analysis: OLECTRA is trading at ₹1,177, well below DMA 50 (₹1,332) and DMA 200 (₹1,384), confirming short-term weakness. RSI at 27.9 indicates oversold conditions, but MACD (-60.4) remains sharply negative, suggesting strong bearish bias. Volume (3.26 lakh) is above average (2.55 lakh), showing active participation, but largely on the selling side. With a high P/E (66.3) compared to industry PE (33.9), valuation looks stretched. Fundamentals like ROCE (21%) and ROE (14.2%) are supportive, but intraday momentum is weak, making this a risky candidate for trading today.

💡 Optimal Buy Price: ₹1,170–₹1,180 (only for speculative bounce trades)

🎯 Profit-Taking Exit Levels: ₹1,200–₹1,215 (short-term bounce target)

🛑 Stop-Loss / Loss Protection: ₹1,160 (below immediate support)

⏱️ If Already Holding: Exit intraday if price fails to sustain above ₹1,170 or if RSI drops below 27 with MACD continuing negative. Consider booking profits if price approaches ₹1,200–₹1,215 with volume confirmation.

✅ Positive

• 📈 Strong ROCE at 21.0% and ROE at 14.2%
• 📊 EPS at ₹17.8 supports valuation strength
• 📈 Quarterly PAT improved to ₹52.8 Cr. vs ₹22.4 Cr. (+9.5%)
• 📊 FII holding increased by 1.38% and DII holding by 0.21%
• 📊 Volume above weekly average, showing active participation

⚠️ Limitation

• 📉 Price trading below DMA 50 and DMA 200 confirms weak trend
• 📊 RSI oversold but momentum remains weak
• 📉 Dividend yield at 0.04% is negligible
• 📊 Debt-to-equity ratio at 0.28 is moderately high

🚨 Company Negative News

• 📉 MACD sharply negative (-60.4), confirming strong bearish momentum
• 📊 Valuation stretched with P/E 66.3 vs industry PE 33.9

🌟 Company Positive News

• 📈 Quarterly profit growth (+9.5%) supports earnings momentum
• 📊 FII and DII inflows provide investor confidence

🏭 Industry

• 📊 Industry PE at 33.9, much lower than OLECTRA’s 66.3, suggesting overvaluation
• 🚍 EV & bus manufacturing sector outlook tied to government incentives and adoption trends

📌 Conclusion

OLECTRA shows weak intraday potential today due to bearish technicals and stretched valuation. While oversold RSI and strong institutional inflows may trigger a bounce, momentum indicators remain unfavorable. Traders may attempt speculative entries near ₹1,170–₹1,180 with stop-loss at ₹1,160 and profit booking around ₹1,200–₹1,215. Conservative traders should avoid intraday positions until technical strength improves.

Would you like me to extend this into a peer benchmarking overlay comparing OLECTRA with other EV and auto-manufacturing sector stocks, so you can identify relative intraday strength opportunities?