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ABB - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.5

Last Updated Time : 03 Feb 26, 05:01 pm

Technical Rating: 3.5

Stock Code ABB Market Cap 1,15,717 Cr. Current Price 5,461 ₹ High / Low 6,300 ₹
Stock P/E 65.4 Book Value 340 ₹ Dividend Yield 0.79 % ROCE 38.6 %
ROE 28.8 % Face Value 2.00 ₹ DMA 50 5,103 ₹ DMA 200 5,401 ₹
Chg in FII Hold -0.65 % Chg in DII Hold 0.84 % PAT Qtr 409 Cr. PAT Prev Qtr 352 Cr.
RSI 63.1 MACD 38.3 Volume 3,07,061 Avg Vol 1Wk 8,49,741
Low price 4,590 ₹ High price 6,300 ₹ PEG Ratio 1.04 Debt to equity 0.01
52w Index 50.9 % Qtr Profit Var -7.17 % EPS 83.2 ₹ Industry PE 35.4

📊 Technical Analysis

  • Chart Patterns: Price is above both 50 DMA (5,103 ₹) and 200 DMA (5,401 ₹), confirming bullish structure but facing resistance near highs.
  • RSI (63.1): Approaching overbought zone, suggesting caution for fresh entries.
  • MACD (38.3): Positive crossover indicates bullish momentum.
  • Bollinger Bands: Price near upper band, showing strength but risk of short-term pullback.
  • Volume Trends: Current volume (3.07L) is well below 1-week average (8.49L), reflecting weak participation despite price strength.

📈 Momentum & Signals

  • Trend: Strong uptrend with short-term consolidation.
  • Support Zones: 5,400 ₹ (200 DMA), 5,100 ₹ (50 DMA), 4,590 ₹ (major support).
  • Resistance Zones: 5,600 ₹ (near-term resistance), 6,000 ₹ (psychological level), 6,300 ₹ (52-week high).
  • Entry Zone: 5,350–5,450 ₹ if RSI cools and volumes improve.
  • Exit Zone: 5,900–6,200 ₹ unless breakout above 6,300 ₹ occurs.

✅ Positive

  • Strong ROCE (38.6%) and ROE (28.8%) highlight excellent efficiency.
  • Near debt-free status with debt-to-equity ratio of 0.01.
  • Quarterly PAT improved to 409 Cr. from 352 Cr., showing growth momentum.

⚠️ Limitation

  • High P/E (65.4) compared to industry average (35.4), suggesting premium valuation.
  • Dividend yield is modest (0.79%), limiting income appeal.
  • Weak trading volumes reduce conviction in short-term rallies.

📉 Company Negative News

  • FII holding decreased (–0.65%), showing reduced foreign investor confidence.
  • Quarterly profit variation (–7.17%) indicates earnings volatility.

📈 Company Positive News

  • DII holding increased (+0.84%), showing strong domestic institutional support.
  • Stock remains above both 50 DMA and 200 DMA, confirming bullish structure.
  • EPS of 83.2 ₹ supports earnings strength despite high valuation.

🏭 Industry

  • Industry P/E at 35.4 is lower, highlighting ABB’s premium valuation.
  • Industrial automation and engineering sector benefits from infrastructure growth and modernization trends.

🔎 Conclusion

  • Stock is in a strong uptrend with short-term consolidation.
  • RSI near overbought and low volume suggest cautious accumulation.
  • Best strategy: Buy near 5,350–5,450 ₹ with stop-loss below 5,100 ₹.
  • Upside potential towards 6,000–6,300 ₹ if momentum sustains and volumes improve.

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