ABB - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.9

Technical Analysis Report

• Trend Status: Consolidating with mild bullish bias
• Moving Averages: Price (₹5,260) is slightly above 50 DMA (₹5,250) but below 200 DMA (₹5,657), indicating short-term strength but long-term caution
• RSI (50.3): Neutral zone, no strong momentum signal
• MACD (5.37): Positive crossover, suggesting mild bullish momentum
• Bollinger Bands: Price near mid-band, indicating equilibrium with no breakout signal
• Volume: Below average (1.50L vs 1.82L), showing reduced participation
• Support Zones: ₹5,150, ₹4,980
• Resistance Zones: ₹5,420, ₹5,600
• Entry Zone: ₹5,150–₹5,200 (near support)
• Exit Zone: ₹5,580–₹5,600 (near resistance)

Sources

Investing.com India

+2

Positive

• Strong ROCE (38.6%) and ROE (28.8%) reflect excellent operational efficiency
• Low debt-to-equity ratio (0.01) ensures financial robustness
• MACD remains positive, hinting at underlying bullish sentiment

Limitation

• High P/E ratio (62) compared to industry average (51.6) suggests premium valuation
• Volume trends are weakening, indicating low conviction
• Price below 200 DMA signals long-term caution

Company Negative News

• Quarterly PAT declined from ₹474 Cr to ₹352 Cr (-20.5%)
• FII holding dropped by 0.96%, showing reduced foreign investor interest

Company Positive News

• EPS of ₹84.7 supports strong earnings profile
• Dividend yield of 0.84% adds shareholder value

Industry

• Electrical equipment sector is showing resilience amid infrastructure and industrial growth
• Industry P/E of 51.6 indicates strong investor interest across the segment

Conclusion

• ABB is in a consolidation phase with mild bullish signals
• Entry near ₹5,150–₹5,200 offers a favorable risk-reward setup
• Exit near ₹5,580–₹5,600 is ideal for short-term traders
• Investors should monitor volume and 200 DMA for trend confirmation