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BRIGADE - Technical Analysis with Chart Patterns & Indicators

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Rating: 2.6

Last Updated Time : 03 Feb 26, 05:01 pm

Technical Rating: 2.6

Stock Code BRIGADE Market Cap 18,222 Cr. Current Price 745 ₹ High / Low 1,332 ₹
Stock P/E 44.7 Book Value 252 ₹ Dividend Yield 0.34 % ROCE 9.09 %
ROE 8.80 % Face Value 10.0 ₹ DMA 50 850 ₹ DMA 200 955 ₹
Chg in FII Hold -0.53 % Chg in DII Hold 0.27 % PAT Qtr 93.9 Cr. PAT Prev Qtr 50.2 Cr.
RSI 26.8 MACD -38.8 Volume 95,603 Avg Vol 1Wk 5,87,642
Low price 711 ₹ High price 1,332 ₹ PEG Ratio 3.05 Debt to equity 0.32
52w Index 5.50 % Qtr Profit Var 3.11 % EPS 16.2 ₹ Industry PE 30.2

📈 Technical Analysis

  • Chart Patterns: Stock has corrected sharply from highs (1,332 ₹) and is trading at 745 ₹, showing weakness and inability to sustain above moving averages.
  • Moving Averages: Current price is well below both 50 DMA (850 ₹) and 200 DMA (955 ₹), confirming strong bearish bias.
  • RSI: At 26.8, stock is deeply oversold, suggesting potential for short-term rebound but overall weakness.
  • MACD: Negative (-38.8), confirming strong bearish momentum.
  • Bollinger Bands: Price near lower band, indicating oversold conditions and possible stabilization.
  • Volume Trends: Current volume (95,603) is significantly lower than average weekly volume (5,87,642), showing weak participation and cautious sentiment.

🎯 Momentum & Trade Zones

  • Short-term Momentum: Strongly bearish, but oversold RSI may trigger a technical bounce.
  • Support Levels: 740 ₹ (near-term), 711 ₹ (major support).
  • Resistance Levels: 850 ₹ (50 DMA), 955 ₹ (200 DMA), 1,000 ₹ (strong resistance).
  • Optimal Entry: 740–755 ₹ range if RSI stabilizes.
  • Optimal Exit: 820–850 ₹ unless breakout above 955 ₹ is confirmed.

📊 Trend Status

Stock is reversing from highs with strong bearish signals, but oversold RSI suggests possible rebound near support.

✅ Positive

  • Quarterly PAT improved (93.9 Cr. vs 50.2 Cr.).
  • DII holding increased (+0.27%), showing domestic institutional confidence.
  • Debt-to-equity ratio at 0.32, indicating manageable leverage.
  • EPS at 16.2 ₹ supports earnings visibility.

⚠️ Limitation

  • High valuation with P/E of 44.7 vs industry average of 30.2.
  • Weak profitability metrics with ROCE (9.09%) and ROE (8.80%).
  • PEG ratio of 3.05 indicates expensive valuation relative to growth.

📉 Company Negative News

  • FII holding decreased (-0.53%), showing reduced foreign investor confidence.
  • Stock trading far below both 50 DMA and 200 DMA, showing technical weakness.
  • 52-week index gain only 5.50%, underperforming peers.

📈 Company Positive News

  • Quarterly profit growth (+3.11%) highlights earnings improvement.
  • DII holding increased (+0.27%), reflecting domestic investor support.

🏭 Industry

  • Real estate & construction sector trading at industry P/E of 30.2, lower than Brigade’s valuation.
  • Sector supported by urban housing demand and infrastructure growth.

🔎 Conclusion

Brigade is technically reversing with strong bearish signals but oversold RSI suggests possible rebound near 740–755 ₹. Traders may consider cautious entry with exit around 820–850 ₹. Long-term investors should wait for breakout above 955 ₹ for bullish confirmation, given premium valuation and weak profitability metrics.

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