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CESC - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.5

Last Updated Time : 04 May 26, 11:56 am

Technical Rating: 3.5

Stock Code CESC Market Cap 24,858 Cr. Current Price 188 ₹ High / Low 195 ₹
Stock P/E 29.4 Book Value 77.2 ₹ Dividend Yield 3.20 % ROCE 9.95 %
ROE 7.97 % Face Value 1.00 ₹ DMA 50 165 ₹ DMA 200 163 ₹
Chg in FII Hold -0.27 % Chg in DII Hold 0.63 % PAT Qtr 176 Cr. PAT Prev Qtr 242 Cr.
RSI 76.0 MACD 8.76 Volume 25,59,075 Avg Vol 1Wk 51,46,187
Low price 138 ₹ High price 195 ₹ PEG Ratio -94.7 Debt to equity 1.12
52w Index 86.9 % Qtr Profit Var 2.33 % EPS 6.39 ₹ Industry PE 30.5

📈 Chart & Trend Analysis:

- Current price ₹188 is above both 50 DMA (₹165) and 200 DMA (₹163), reflecting strong short-term and medium-term strength.

- RSI at 76.0 indicates overbought conditions, suggesting risk of near-term correction.

- MACD at 8.76 remains positive, supporting bullish bias.

- Bollinger Bands show price near upper band, highlighting potential resistance.

- Volume (25,59,075) is below 1-week average (51,46,187), showing reduced participation despite price strength.

🎯 Entry Zone: ₹175–182 (support near 50 DMA)

🎯 Exit Zone: ₹190–195 (resistance near recent highs)

📊 Status: Trending upward but overbought; consolidation or pullback likely unless volume strengthens.

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Positive

✔ Price trading above both 50 DMA and 200 DMA, showing strong technical support

✔ Dividend yield of 3.20% adds investor appeal

✔ EPS of ₹6.39 provides earnings visibility

✔ DII holdings increased (+0.63%), reflecting domestic institutional support

Limitation

⚠ RSI at 76 indicates overbought conditions, raising risk of correction

⚠ PEG ratio (-94.7) highlights poor growth valuation balance

⚠ Debt-to-equity ratio at 1.12 shows high leverage

⚠ Sequential PAT decline (₹242 Cr → ₹176 Cr) raises caution

Company Negative News

📉 Decline in FII holdings (-0.27%) shows reduced foreign investor confidence

📉 Profit decline sequentially highlights earnings pressure

Company Positive News

📈 Domestic institutional inflows (+0.63%) provide support

📈 Dividend yield remains attractive for income investors

Industry

🏭 Power & utilities sector trades at average PE (30.5), making CESC fairly valued relative to peers

🏭 Sector demand supported by stable electricity consumption and infrastructure growth

Conclusion

CESC is trending upward with bullish signals supported by MACD and price strength above moving averages, but faces overbought RSI and declining profits. Entry near ₹175–182 offers favorable risk-reward, with exits around ₹190–195. Long-term investors should weigh dividend yield and sector stability against high leverage and earnings pressure.

This HTML snapshot captures short-term bullish momentum with cautionary signals. Would you like me to also prepare a multi-timeframe overlay (intraday, swing, and long-term investment suitability) for CESC, so you can directly integrate it into your modular workflow templates?

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