ARE&M - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.9

Technical Analysis Report

• Trend Status: Trending upward
• Moving Averages: Price (₹1,011) is above 50 DMA (₹1,000) but slightly below 200 DMA (₹1,031), indicating short-term bullish momentum with long-term caution
• RSI (51.6): Neutral zone, slight bullish bias
• MACD (1.43): Positive crossover, confirming upward momentum
• Bollinger Bands: Price near mid-band, suggesting consolidation with breakout potential
• Volume: Above average (3.90L vs 3.15L), showing strong market interest
• Support Zones: ₹990, ₹960
• Resistance Zones: ₹1,040, ₹1,080
• Entry Zone: ₹990–₹1,010 (near support)
• Exit Zone: ₹1,040–₹1,080 (near resistance)

Positive

• MACD and volume trends support short-term bullish momentum
• Price above 50 DMA indicates near-term strength
• Strong ROCE (16.8%) and ROE (12.3%) reflect operational efficiency
• Low debt-to-equity ratio (0.04) shows financial prudence

Limitation

• Price still below 200 DMA, limiting long-term bullish confirmation
• RSI in mid-range, lacking strong directional bias
• PEG ratio of 1.12 suggests moderate valuation pressure

Company Negative News

• Quarterly profit variation shows a decline of -20.7%
• FII holding dropped by 1.42%, reflecting cautious foreign sentiment

Company Positive News

• Quarterly PAT improved from ₹167 Cr to ₹194 Cr
• DII holding increased by 2.24%, showing strong domestic institutional confidence
• EPS of ₹49.9 supports earnings visibility

Industry

• Renewable energy and infrastructure sector remains a key growth area with government backing
• Industry P/E of 33.4 suggests ARE&M trades at a discount

Conclusion

• ARE&M is in a bullish trend with improving technical indicators
• Entry near ₹990–₹1,010 offers a favorable setup
• Exit near ₹1,040–₹1,080 is ideal for short-term gains
• Investors should monitor RSI and MACD for confirmation of sustained momentum