ACE - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.2

📊 Chart Patterns & Trend: ACE is trading below both its 50 DMA (1,005 ₹) and 200 DMA (1,110 ₹), indicating weakness and a bearish undertone. Price action shows consolidation near 920–950 ₹ after a steep correction from highs of 1,600 ₹, with strong support around 909 ₹.

📈 Moving Averages: Current price (928 ₹) is below both moving averages, signaling short-term and medium-term weakness.

📉 RSI: At 38.2, RSI is near oversold territory, suggesting potential for a short-term bounce.

📊 MACD: Negative MACD (-19.6) confirms bearish momentum, highlighting caution for traders.

📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions. A bounce is possible if buying interest emerges.

📊 Volume Trends: Current volume (1.68L) is significantly below 1-week average (5.22L), showing weak participation and lack of conviction in recent moves.

🎯 Entry Zone: 910–930 ₹ (near support and oversold RSI).

🚪 Exit Zone: 1,000–1,050 ₹ (resistance near DMA levels).

⚠️ Stop Loss: 890 ₹ (below recent support).

📌 Overall Trend: Consolidating with bearish bias. A reversal requires sustained move above 1,000 ₹ with strong volume.

Positive

• Strong ROCE (40.1%) and ROE (28.5%).
• Low debt-to-equity ratio (0.08).
• Quarterly PAT growth (96.8 Cr. → 104 Cr.).
• EPS of 35.8 ₹ indicates earnings stability.
• PEG ratio of 0.46 suggests attractive valuation relative to growth.

Limitation

• Stock trading below both 50 DMA and 200 DMA.
• Weak RSI and MACD indicate bearish momentum.
• Dividend yield of 0.22% is modest.
• Volume participation is weak, limiting breakout potential.
• 52-week performance nearly flat (+2.81%).

Company Negative News

• FII holding reduced by -1.08%.
• DII holding reduced by -0.22%.

Company Positive News

• Quarterly profit growth of 10.1% shows operational improvement.
• Strong fundamentals with high ROCE and ROE.

Industry

• Industry PE at 33.9, higher than company’s P/E of 25.9, making ACE relatively undervalued.
• Sector remains competitive with moderate growth outlook.

Conclusion

⚖️ ACE is consolidating near strong support levels with RSI suggesting potential rebound. Entry near 910–930 ₹ offers limited upside unless price breaks above 1,000–1,050 ₹ with strong volume. Fundamentally strong but technically weak, making cautious accumulation advisable.