ATGL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.2

📊 Chart Patterns & Trend: ATGL is trading below both its 50 DMA (607 ₹) and 200 DMA (640 ₹), indicating weakness and a bearish undertone. Price action shows consolidation near 560–580 ₹ after a steep correction from highs of 798 ₹, with strong support around 533 ₹.

📈 Moving Averages: Current price (569 ₹) is below both moving averages, signaling short-term and medium-term weakness.

📉 RSI: At 35.7, RSI is near oversold territory, suggesting potential for a short-term bounce.

📊 MACD: Negative MACD (-7.97) confirms bearish momentum, highlighting caution for traders.

📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions. A bounce is possible if buying interest emerges.

📊 Volume Trends: Current volume (2.71L) is slightly above 1-week average (2.46L), showing moderate participation but no strong accumulation signals.

🎯 Entry Zone: 550–570 ₹ (near support and oversold RSI).

🚪 Exit Zone: 600–620 ₹ (resistance near DMA levels).

⚠️ Stop Loss: 530 ₹ (below recent support).

📌 Overall Trend: Consolidating with bearish bias. A reversal requires sustained move above 600–620 ₹ with strong volume.

Positive

• Strong ROCE (17.4%) and ROE (16.7%).
• Low debt-to-equity ratio (0.45).
• EPS of 5.61 ₹ indicates earnings stability.
• Volume slightly above average, showing some buying interest.

Limitation

• Stock trading below both 50 DMA and 200 DMA.
• High P/E of 101 vs industry average of 20.4.
• Dividend yield of 0.04% offers negligible income cushion.
• PEG ratio of 11.6 suggests expensive valuation relative to growth.
• Weak 52-week performance (+13.6%).

Company Negative News

• FII holding reduced by -0.14%.
• DII holding reduced by -0.08%.
• Quarterly profit variation of -9.22% shows inconsistency.

Company Positive News

• Quarterly PAT stable at 162 Cr.
• Strong fundamentals with ROCE and ROE above industry averages.

Industry

• Industry PE at 20.4, much lower than company’s valuation.
• Energy distribution sector remains competitive with moderate growth outlook.

Conclusion

⚖️ ATGL is consolidating near support levels with RSI suggesting potential rebound. Entry near 550–570 ₹ offers limited upside unless price breaks above 600–620 ₹ with strong volume. Fundamentally stable but technically weak, making cautious accumulation advisable.