ARE&M - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.3
| Stock Code | ARE&M | Market Cap | 16,579 Cr. | Current Price | 906 ₹ | High / Low | 1,096 ₹ |
| Stock P/E | 21.3 | Book Value | 446 ₹ | Dividend Yield | 1.16 % | ROCE | 13.5 % |
| ROE | 10.0 % | Face Value | 1.00 ₹ | DMA 50 | 834 ₹ | DMA 200 | 893 ₹ |
| Chg in FII Hold | -0.06 % | Chg in DII Hold | -0.17 % | PAT Qtr | 187 Cr. | PAT Prev Qtr | 183 Cr. |
| RSI | 65.5 | MACD | 12.4 | Volume | 33,91,214 | Avg Vol 1Wk | 38,94,338 |
| Low price | 670 ₹ | High price | 1,096 ₹ | PEG Ratio | 47.4 | Debt to equity | 0.05 |
| 52w Index | 55.4 % | Qtr Profit Var | 12.4 % | EPS | 53.0 ₹ | Industry PE | 28.1 |
📊 Chart Patterns: ARE&M is forming higher highs with resistance near ₹940–₹960 and support around ₹890 (200 DMA). Trendlines suggest bullish continuation with momentum strength.
📈 Moving Averages: Current price (₹906) is above both 50 DMA (₹834) and 200 DMA (₹893), confirming bullish alignment.
📊 RSI: At 65.5, RSI indicates strong momentum, approaching overbought territory.
📉 MACD: Positive at 12.4, confirming bullish crossover and short-term upward bias.
📊 Bollinger Bands: Price is near upper band, suggesting strong momentum but potential volatility.
📊 Volume Trends: Current volume (33,91,214) is slightly below 1-week average (38,94,338), showing reduced participation but sustained interest.
🚀 Momentum Signals: Bullish bias with potential breakout if price sustains above ₹940.
🎯 Entry Zone: ₹890–₹905 (near 200 DMA support).
🎯 Exit Zone: ₹940–₹960 (resistance zone and upper Bollinger band).
📌 Trend Status: Trending upward with strong bullish bias.
Positive
- Strong EPS at ₹53.0 supports earnings visibility.
- Price trading above both 50 DMA and 200 DMA confirms bullish structure.
- Quarterly PAT improved from ₹183 Cr. to ₹187 Cr. (+2.2%).
- Low debt-to-equity ratio (0.05) ensures financial stability.
Limitation
- High PEG ratio (47.4) suggests overvaluation risk.
- RSI nearing overbought territory may limit upside.
- Volume below average, reducing breakout conviction.
Company Negative News
- FII holdings decreased (-0.06%) and DII holdings decreased (-0.17%), showing reduced institutional confidence.
Company Positive News
- Quarterly profit variation (+12.4%) highlights earnings improvement.
- Dividend yield of 1.16% adds shareholder value.
Industry
- Industry PE at 28.1 is higher than ARE&M’s PE (21.3), suggesting undervaluation relative to peers.
- Automotive and engineering sector benefiting from infrastructure growth and demand expansion.
Conclusion
ARE&M shows strong bullish momentum supported by RSI, MACD, and price action above both 50 DMA and 200 DMA. Entry near ₹890–₹905 offers favorable risk-reward, with exit targets around ₹940–₹960. Trend remains upward, but caution is advised due to overvaluation risks and reduced institutional participation.
This can be standardized into a bullish breakout template with sector overlays and peer benchmarking, so you can compare ARE&M against other engineering and automotive peers.