CESC - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.7

📈 CESC is currently trending upward with moderate momentum. The stock is trading above key moving averages, supported by a positive MACD and improving RSI, though volume has softened.

📊 Technical Analysis Summary

• Trend Status: Trending upward
• RSI (59.4): Bullish — approaching overbought zone
• MACD (4.17): Positive crossover — confirms bullish momentum
• Volume: ~49% below 1-week average — momentum lacks strong conviction
• DMA 50 & 200: Price above both — confirms bullish structure
• Bollinger Bands: Price near upper band — momentum strong, but stretched

🎯 Entry & Exit Zones

• Support Levels: ₹171, ₹165, ₹155
• Resistance Levels: ₹185, ₹195, ₹204
• Optimal Entry: ₹172–₹176 (on minor dip)
• Exit Target: ₹195–₹204 (short-term resistance)

✅ Positive

• Price above 50 DMA and 200 DMA — confirms bullish trend
• MACD and RSI support continued upward momentum
• Quarterly PAT improved from ₹211 Cr to ₹242 Cr — 11% growth
• DII and FII holdings increased — institutional confidence
• Dividend yield of 3.28% — attractive for income investors

⚠️ Limitation

• Volume below average — weak participation
• PEG ratio (-91.0) — valuation distortion due to earnings volatility
• Debt-to-equity ratio (1.12) — moderate leverage risk
• ROCE (9.95%) and ROE (7.97%) — modest capital efficiency

📉 Company Negative News

• Stock down ~12% from 52-week high — recent pullback
• Valuation slightly above industry PE — potential re-rating risk

📈 Company Positive News

• Consistent quarterly profit growth
• Institutional accumulation and technical recovery

🏭 Industry

• Sector: Power / Utilities
• Industry P/E: 24.7 vs CESC’s P/E: 28.2 — slightly overvalued
• Sector outlook stable with regulatory support and infrastructure expansion

🧾 Conclusion

• CESC is in a bullish trend with moderate technical momentum
• Entry near ₹172–₹176 with targets at ₹195–₹204
• Monitor RSI and volume for signs of continuation or exhaustion
• Valuation and debt levels warrant caution for long-term positions