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CESC - Technical Analysis with Chart Patterns & Indicators

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Rating: 2.9

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

Technical Rating: 2.9

Stock Code CESC Market Cap 19,002 Cr. Current Price 143 ₹ High / Low 185 ₹
Stock P/E 22.6 Book Value 77.2 ₹ Dividend Yield 4.16 % ROCE 9.95 %
ROE 7.97 % Face Value 1.00 ₹ DMA 50 161 ₹ DMA 200 165 ₹
Chg in FII Hold 0.79 % Chg in DII Hold -0.04 % PAT Qtr 242 Cr. PAT Prev Qtr 211 Cr.
RSI 35.3 MACD -6.34 Volume 9,93,819 Avg Vol 1Wk 30,46,860
Low price 119 ₹ High price 185 ₹ PEG Ratio -72.8 Debt to equity 1.12
52w Index 36.8 % Qtr Profit Var 11.0 % EPS 6.36 ₹ Industry PE 22.1

📈 Technical Analysis

  • Chart Patterns: Stock has corrected from highs (185 ₹) and is trading at 143 ₹, showing weakness and inability to sustain above moving averages.
  • Moving Averages: Current price is below both 50 DMA (161 ₹) and 200 DMA (165 ₹), confirming bearish bias.
  • RSI: At 35.3, stock is weak and approaching oversold territory, suggesting limited downside but lack of strong momentum.
  • MACD: Negative (-6.34), confirming bearish momentum in the short term.
  • Bollinger Bands: Price near lower band, indicating oversold conditions and possible stabilization.
  • Volume Trends: Current volume (9,93,819) is significantly lower than average weekly volume (30,46,860), showing weak participation and cautious sentiment.

🎯 Momentum & Trade Zones

  • Short-term Momentum: Weak, with bearish signals dominating but possible rebound near support.
  • Support Levels: 140 ₹ (near-term), 119 ₹ (major support).
  • Resistance Levels: 161 ₹ (50 DMA), 165 ₹ (200 DMA), 175–185 ₹ (strong resistance).
  • Optimal Entry: 140–145 ₹ range if RSI stabilizes.
  • Optimal Exit: 160–165 ₹ unless breakout above 175–185 ₹ 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 (242 Cr. vs 211 Cr.).
  • FII holding increased (+0.79%), showing foreign investor confidence.
  • Dividend yield at 4.16% provides steady income for investors.

⚠️ Limitation

  • Stock trading below both 50 DMA and 200 DMA, showing technical weakness.
  • High debt-to-equity ratio at 1.12, indicating leverage risk.
  • Weak profitability metrics with ROCE (9.95%) and ROE (7.97%).
  • PEG ratio of -72.8 indicates valuation concerns relative to growth.

📉 Company Negative News

  • DII holding decreased (-0.04%), showing reduced domestic institutional interest.
  • 52-week index gain only 36.8%, underperforming peers.

📈 Company Positive News

  • Quarterly profit growth (+11%) highlights earnings improvement.
  • FII holding increased (+0.79%), reflecting foreign investor support.

🏭 Industry

  • Power & utilities sector trading at industry P/E of 22.1, in line with CESC’s valuation (22.6).
  • Sector supported by steady demand for electricity and infrastructure growth.

🔎 Conclusion

CESC is technically reversing with strong bearish signals but oversold RSI suggests possible rebound near 140–145 ₹. Traders may consider cautious entry with exit around 160–165 ₹. Long-term investors should wait for breakout above 175–185 ₹ for bullish confirmation, given high debt levels and weak profitability metrics despite steady dividend yield and earnings growth.

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