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ACE - Technical Analysis with Chart Patterns & Indicators

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Rating: 4.1

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

Technical Rating: 4.1

Stock Code ACE Market Cap 10,535 Cr. Current Price 885 ₹ High / Low 1,390 ₹
Stock P/E 24.7 Book Value 149 ₹ Dividend Yield 0.23 % ROCE 40.1 %
ROE 28.5 % Face Value 2.00 ₹ DMA 50 917 ₹ DMA 200 1,055 ₹
Chg in FII Hold 0.04 % Chg in DII Hold -0.07 % PAT Qtr 104 Cr. PAT Prev Qtr 96.8 Cr.
RSI 52.0 MACD -27.6 Volume 8,59,937 Avg Vol 1Wk 3,74,445
Low price 775 ₹ High price 1,390 ₹ PEG Ratio 0.44 Debt to equity 0.08
52w Index 17.8 % Qtr Profit Var 10.1 % EPS 35.8 ₹ Industry PE 32.3

📈 Technical Chart Analysis

  • Moving Averages: Current price (885 ₹) is below both 50 DMA (917 ₹) and 200 DMA (1,055 ₹), showing short-term weakness.
  • RSI: At 52.0, the stock is neutral — neither overbought nor oversold.
  • MACD: Negative (-27.6), indicating bearish crossover and weak momentum.
  • Bollinger Bands: Price is near the mid-lower band, suggesting consolidation with potential rebound.
  • Volume Trends: Current volume (8,59,937) is much higher than 1-week average (3,74,445), showing strong participation and possible accumulation.

📊 Momentum & Trend Signals

  • Short-term Momentum: Mixed — bearish MACD but strong volume support.
  • Support Zone: 775 ₹ (recent low, strong base).
  • Resistance Zone: 917–1,055 ₹ (near 50 DMA and 200 DMA).
  • Optimal Entry: Around 800–850 ₹ if support holds.
  • Optimal Exit: 1,000–1,050 ₹ if price rebounds to moving averages.
  • Trend Status: Currently consolidating with potential reversal if volume sustains above support.

✅ Positive

  • Strong ROCE (40.1%) and ROE (28.5%) indicate efficient capital use.
  • Low debt-to-equity (0.08) ensures financial stability.
  • Quarterly PAT growth (10.1%) shows consistent earnings improvement.
  • PEG ratio of 0.44 suggests undervaluation relative to growth.

⚠️ Limitation

  • Stock trading below both 50 DMA and 200 DMA, showing weak technical strength.
  • Dividend yield is very low (0.23%), limiting passive income appeal.
  • P/E of 24.7 is slightly below industry average (32.3), but valuation premium may reduce upside.

📉 Company Negative News

  • Decline in DII holding (-0.07%) indicates reduced domestic institutional confidence.
  • Stock corrected sharply from 1,390 ₹ high, showing vulnerability to profit booking.

📈 Company Positive News

  • FII holding increased (+0.04%), reflecting foreign investor interest.
  • Quarterly PAT improved from 96.8 Cr. to 104 Cr., showing earnings momentum.

🏭 Industry

  • Construction equipment sector is cyclical but currently supported by infrastructure spending.
  • Industry P/E at 32.3 suggests sector is moderately valued; ACE trades at a discount, offering potential upside.

🔎 Conclusion

  • ACE shows strong fundamentals with high ROCE/ROE and low debt.
  • Technically, the stock is consolidating near support with strong volume, indicating possible reversal.
  • Entry near 800–850 ₹ is favorable, with exit near 1,000–1,050 ₹.
  • Short-term outlook: cautious accumulation; long-term outlook remains positive given growth potential and undervaluation.

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