ABB - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.8

📊 Chart Patterns & Trend: ABB is trading right at its 50 DMA (5,172 ₹) and slightly below its 200 DMA (5,509 ₹). This indicates a consolidation phase with mild bearish undertone. Price action has been range-bound between 4,600–5,500 ₹ after failing to sustain highs near 7,450 ₹.

📈 Moving Averages: Current price (5,170 ₹) is at 50 DMA but below 200 DMA, suggesting short-term weakness while long-term trend remains intact.

📉 RSI: At 45.1, RSI is leaning towards oversold territory, signaling potential accumulation zone.

📊 MACD: Positive MACD (15.4) indicates mild bullish momentum, though strength is limited.

📊 Bollinger Bands: Price is near the lower band, suggesting support around 5,000 ₹. A bounce is possible if volume sustains.

📊 Volume Trends: Current volume (3.65L) is higher than 1-week average (1.96L), showing strong participation on recent moves, which could support a reversal attempt.

🎯 Entry Zone: 5,000–5,150 ₹ (support zone).

🚪 Exit Zone: 5,500–5,600 ₹ (resistance zone).

⚠️ Stop Loss: 4,900 ₹ (below recent support).

📌 Overall Trend: Consolidating with mild bearish bias. Watch for reversal signals if price sustains above 5,200 ₹ with volume.

Positive

• Strong ROCE (38.6%) and ROE (28.8%).
• Low debt-to-equity ratio (0.01).
• Quarterly PAT growth from 352 Cr. to 409 Cr.
• Healthy EPS of 83.2 ₹.

Limitation

• High P/E of 62 vs industry average of 43.9.
• Quarterly profit variation of -7.17% indicates inconsistency.
• Stock trading below 200 DMA, showing weakness in long-term momentum.
• Dividend yield of 0.87% is modest.

Company Negative News

• FII holding reduced by -0.96%.
• Stock has corrected significantly from 7,450 ₹ highs.

Company Positive News

• DII holding increased by 0.65%.
• Strong fundamentals with high ROCE and ROE.
• Volume surge indicates investor interest at current levels.

Industry

• Industry PE at 43.9, lower than ABB’s valuation.
• Sector remains competitive with moderate growth outlook.

Conclusion

⚖️ ABB is consolidating near support levels with RSI and volume hinting at possible reversal. Entry near 5,000–5,150 ₹ offers favorable risk-reward, with resistance at 5,500–5,600 ₹. Long-term investors should be cautious of high valuations, but strong fundamentals provide resilience.