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ADANIENSOL - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.6

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

Technical Rating: 3.6

Stock Code ADANIENSOL Market Cap 1,06,211 Cr. Current Price 884 ₹ High / Low 1,068 ₹
Stock P/E 186 Book Value 167 ₹ Dividend Yield 0.00 % ROCE 5.13 %
ROE 3.81 % Face Value 10.0 ₹ DMA 50 946 ₹ DMA 200 916 ₹
Chg in FII Hold 0.41 % Chg in DII Hold 0.17 % PAT Qtr 114 Cr. PAT Prev Qtr 101 Cr.
RSI 37.4 MACD -33.2 Volume 9,86,775 Avg Vol 1Wk 20,43,436
Low price 639 ₹ High price 1,068 ₹ PEG Ratio 1.52 Debt to equity 0.52
52w Index 57.2 % Qtr Profit Var -30.3 % EPS 4.74 ₹ Industry PE 45.2

📈 Technical Chart Analysis

  • Moving Averages: Current price (884 ₹) is below 50 DMA (946 ₹) and 200 DMA (916 ₹), showing short-term weakness but close to long-term support.
  • RSI: At 37.4, the stock is approaching oversold territory, suggesting potential rebound.
  • MACD: Negative (-33.2), indicating bearish crossover and weak momentum.
  • Bollinger Bands: Price is near the lower band, signaling oversold conditions and possible short-term bounce.
  • Volume Trends: Current volume (9,86,775) is lower than 1-week average (20,43,436), showing reduced participation and weak conviction.

📊 Momentum & Trend Signals

  • Short-term Momentum: Bearish bias due to negative MACD and weak volume.
  • Support Zone: 840–860 ₹ (near recent lows and psychological support).
  • Resistance Zone: 946–1,000 ₹ (near 50 DMA and psychological round level).
  • Optimal Entry: Around 850–870 ₹ if RSI remains oversold and support holds.
  • Optimal Exit: 950–1,000 ₹ if price rebounds to moving averages.
  • Trend Status: Currently consolidating with bearish undertone; reversal possible if RSI triggers bounce.

✅ Positive

  • FII holding increased (+0.41%), showing foreign investor confidence.
  • DII holding also increased (+0.17%), reflecting domestic support.
  • Quarterly PAT improved from 101 Cr. to 114 Cr., showing earnings growth despite volatility.
  • Strong 52-week performance (+57.2%) indicates resilience over the longer term.

⚠️ Limitation

  • Extremely high P/E (186) compared to industry average (45.2), suggesting overvaluation.
  • Weak ROCE (5.13%) and ROE (3.81%) highlight poor capital efficiency.
  • Debt-to-equity ratio of 0.52 is relatively high compared to peers.
  • Dividend yield is 0%, offering no passive income to investors.

📉 Company Negative News

  • Quarterly profit variation (-30.3%) indicates earnings volatility.
  • Stock corrected from 1,068 ₹ high, showing susceptibility to profit booking.

📈 Company Positive News

  • EPS growth (4.74 ₹) remains steady despite sector challenges.
  • Institutional investors (both FII and DII) increased holdings, signaling confidence.

🏭 Industry

  • Renewable energy sector is growing rapidly, supported by government initiatives.
  • Industry P/E at 45.2 suggests sector is moderately valued; Adani Energy Solutions trades at a steep premium.

🔎 Conclusion

  • Adani Energy Solutions shows strong investor interest but weak fundamentals and high valuation.
  • Technically, the stock is consolidating near support with oversold RSI, suggesting possible short-term rebound.
  • Entry near 850–870 ₹ is favorable for short-term traders, with exit near 950–1,000 ₹.
  • Short-term outlook: cautious trading; long-term outlook requires improvement in ROCE/ROE and earnings stability.

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