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ATGL - 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 ATGL Market Cap 57,064 Cr. Current Price 519 ₹ High / Low 798 ₹
Stock P/E 90.5 Book Value 40.8 ₹ Dividend Yield 0.05 % ROCE 17.4 %
ROE 16.7 % Face Value 1.00 ₹ DMA 50 567 ₹ DMA 200 618 ₹
Chg in FII Hold -0.07 % Chg in DII Hold 0.02 % PAT Qtr 157 Cr. PAT Prev Qtr 162 Cr.
RSI 33.0 MACD -14.9 Volume 4,62,733 Avg Vol 1Wk 7,62,736
Low price 507 ₹ High price 798 ₹ PEG Ratio 10.4 Debt to equity 0.45
52w Index 4.07 % Qtr Profit Var 9.59 % EPS 5.73 ₹ Industry PE 19.8

📈 Technical Chart Analysis

  • Moving Averages: Current price (519 ₹) is below both 50 DMA (567 ₹) and 200 DMA (618 ₹), confirming bearish momentum.
  • RSI: At 33.0, the stock is oversold, suggesting potential rebound opportunities.
  • MACD: Negative (-14.9), showing bearish crossover and weak momentum.
  • Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible short-term bounce.
  • Volume Trends: Current volume (4,62,733) is lower than 1-week average (7,62,736), showing reduced participation and weak conviction.

📊 Momentum & Trend Signals

  • Short-term Momentum: Bearish bias due to negative MACD and weak volume.
  • Support Zone: 507–515 ₹ (recent low and psychological support).
  • Resistance Zone: 567–600 ₹ (near 50 DMA and psychological round level).
  • Optimal Entry: Around 510–520 ₹ if RSI remains oversold and support holds.
  • Optimal Exit: 570–600 ₹ if price rebounds to moving averages.
  • Trend Status: Currently consolidating with bearish undertone; reversal possible if RSI triggers bounce and volume improves.

✅ Positive

  • ROCE (17.4%) and ROE (16.7%) show moderate capital efficiency.
  • DII holding increased (+0.02%), showing domestic institutional support.
  • Quarterly PAT remains stable (157 Cr. vs 162 Cr.), showing earnings consistency.

⚠️ Limitation

  • Extremely high P/E (90.5) compared to industry average (19.8), suggesting overvaluation.
  • PEG ratio of 10.4 indicates expensive valuation relative to growth.
  • Debt-to-equity ratio of 0.45 adds moderate financial risk.
  • Dividend yield is very low (0.05%), offering minimal passive income.

📉 Company Negative News

  • FII holding declined (-0.07%), showing reduced foreign investor confidence.
  • Stock corrected sharply from 798 ₹ high, showing vulnerability to profit booking.

📈 Company Positive News

  • DII holding increased (+0.02%), reflecting domestic support.
  • Quarterly PAT variation (+9.59%) shows slight improvement in earnings stability.

🏭 Industry

  • Gas distribution sector benefits from rising demand and government infrastructure push.
  • Industry P/E at 19.8 suggests sector is moderately valued; ATGL trades at a steep premium.

🔎 Conclusion

  • ATGL shows moderate fundamentals but trades at very high valuations.
  • Technically, the stock is consolidating near support with oversold RSI, suggesting possible short-term rebound.
  • Entry near 510–520 ₹ is favorable for short-term traders, with exit near 570–600 ₹.
  • Short-term outlook: cautious trading; long-term outlook requires valuation correction and stronger earnings growth.

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