POLYCAB - IntraDay Trade Analysis with Live Signals

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

IntraDay Trade Rating: 3.9

📊 Analysis: POLYCAB is trading at ₹7,438, above both 50 DMA (₹7,380) and 200 DMA (₹6,916), reflecting medium-term strength. RSI at 39.4 indicates oversold-to-neutral momentum, while MACD (-97.1) confirms bearish bias. Intraday volume (2,01,958) is significantly below the 1-week average (6,44,497), suggesting reduced participation today. Fundamentals remain strong with ROCE (29.7%) and ROE (21.4%), supported by robust quarterly PAT growth (+56.7%). Valuations are expensive (P/E 46.2 vs industry PE 20.0), but technicals favor cautious intraday trades.

💡 Optimal Buy Price: ₹7,420–₹7,450 (near support zone).

🎯 Profit-Taking Levels: ₹7,520 – ₹7,580 (short-term resistance).

🛡️ Stop-Loss: ₹7,380 (below intraday support).

⏱️ Exit Strategy if Already Holding: Exit intraday if price fails to sustain above ₹7,430 with weakening momentum. If RSI drops below 38 and MACD remains negative, consider closing positions near ₹7,420–₹7,430. If momentum improves with volume pickup, hold until ₹7,520–₹7,580.

Positive

• 📈 ROCE (29.7%) and ROE (21.4%) show strong efficiency.
• 💡 Trading above 50 & 200 DMA, confirming medium-term bullish trend.
• ⚡ Quarterly PAT growth of 56.7% shows strong earnings momentum.
• 📊 FII holding increased (+2.51%), reflecting foreign investor confidence.

Limitation

• 📉 High P/E (46.2) vs industry PE (20.0) indicates expensive valuation.
• 📊 RSI 39.4 shows weak momentum near oversold zone.
• 📉 Volume below average, limiting intraday strength.

Company Negative News

• ⚠️ DII holding marginally reduced (-0.09%), showing domestic investor caution.
• 📉 MACD negative (-97.1) indicates bearish divergence.

Company Positive News

• ✅ Quarterly PAT improved from ₹568 Cr. to ₹675 Cr.
• 💡 FII holding increased, supporting sentiment.

Industry

• 🏭 Industry PE at 20.0 vs stock PE 46.2, showing premium valuation.
• 📊 Electricals and cables sector remains resilient with strong infrastructure demand outlook.

Conclusion

⚖️ POLYCAB shows strong fundamentals and medium-term bullish trend but weak short-term momentum. Intraday traders should be cautious, buying near support (₹7,420–₹7,450) with tight stop-losses. Upside is possible toward ₹7,520–₹7,580 if momentum improves. Long-term investors may remain cautious due to premium valuations, but intraday trades can be attempted defensively today.

Would you like me to extend this into a peer benchmarking overlay comparing POLYCAB with other electrical and cable sector stocks, or prepare a sector rotation basket scan to highlight stronger intraday momentum candidates?