ARE&M - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.1
| Stock Code | ARE&M | Market Cap | 16,006 Cr. | Current Price | 875 ₹ | High / Low | 1,096 ₹ |
| Stock P/E | 21.2 | Book Value | 425 ₹ | Dividend Yield | 1.20 % | ROCE | 16.8 % |
| ROE | 12.3 % | Face Value | 1.00 ₹ | DMA 50 | 813 ₹ | DMA 200 | 901 ₹ |
| Chg in FII Hold | -0.06 % | Chg in DII Hold | -0.17 % | PAT Qtr | 183 Cr. | PAT Prev Qtr | 212 Cr. |
| RSI | 62.6 | MACD | 32.4 | Volume | 6,35,013 | Avg Vol 1Wk | 10,41,190 |
| Low price | 670 ₹ | High price | 1,096 ₹ | PEG Ratio | 1.07 | Debt to equity | 0.04 |
| 52w Index | 48.0 % | Qtr Profit Var | -22.1 % | EPS | 44.5 ₹ | Industry PE | 27.3 |
📈 Chart Patterns & Moving Averages
ARE&M is trading at ₹875, above its 50 DMA (₹813) but below the 200 DMA (₹901). This indicates short-term strength with medium-term resistance overhead. Support lies near ₹850–860, while resistance is seen at ₹900–920.
📊 RSI & MACD
RSI at 62.6 reflects bullish momentum but nearing overbought territory. MACD at 32.4 is strongly positive, confirming bullish crossover strength.
📉 Bollinger Bands
Price is near the upper band, showing bullish bias with potential volatility. Sustained movement above ₹900 could trigger a breakout, while a dip below ₹850 may invite selling pressure.
🔎 Volume Trends
Current volume (6,35,013) is below the 1-week average (10,41,190), indicating reduced participation. Stronger volume is required to confirm breakout strength.
⚡ Momentum Signals
Short-term momentum is bullish with RSI and MACD aligned positively. Entry zone: ₹860–870. Exit zone: ₹900–920 if resistance breaks, with stop-loss below ₹850.
📌 Trend Status
The stock is trending upward in the short term but faces medium-term resistance near the 200 DMA.
✅ Positive
- Strong ROCE (16.8%) and ROE (12.3%) indicate efficient capital use.
- EPS at ₹44.5 supports long-term fundamentals.
- Debt-to-equity ratio at 0.04 shows very low leverage.
- Dividend yield of 1.20% provides investor support.
⚠️ Limitation
- Quarterly PAT declined (₹183 Cr vs ₹212 Cr), showing short-term weakness.
- RSI above 60 signals risk of short-term correction.
- FII (-0.06%) and DII (-0.17%) holdings decreased, showing reduced institutional confidence.
- PEG ratio at 1.07 indicates moderate overvaluation.
❌ Company Negative News
- No major negative news reported, but profit decline and institutional outflows are concerns.
🌟 Company Positive News
- Strong fundamentals with high EPS and efficient capital returns.
- Dividend yield provides investor support.
- Technical support near DMA 50 offers favorable entry zone.
🏭 Industry
- Renewable energy and engineering sector benefiting from government push and infrastructure demand.
- Peers trading at higher industry PE (27.3), making ARE&M moderately valued.
📌 Conclusion
ARE&M shows solid short-term potential with strong fundamentals, low debt, and bullish MACD momentum. However, declining profits and reduced institutional holdings limit upside. Suitable for cautious entry near ₹860–870 with strict stop-loss at ₹850 and profit booking around ₹900–920 unless volume confirms breakout above ₹920.
This version is tuned for short-term trading signals with sector overlays. Would you like me to also prepare a long-term investment horizon (2–4 years) view for ARE&M with partial exit guidance?