CGPOWER - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.2
| Stock Code | CGPOWER | Market Cap | 1,47,266 Cr. | Current Price | 935 ₹ | High / Low | 938 ₹ |
| Stock P/E | 110 | Book Value | 52.2 ₹ | Dividend Yield | 0.14 % | ROCE | 29.2 % |
| ROE | 21.9 % | Face Value | 2.00 ₹ | DMA 50 | 796 ₹ | DMA 200 | 721 ₹ |
| Chg in FII Hold | 0.01 % | Chg in DII Hold | 0.49 % | PAT Qtr | 412 Cr. | PAT Prev Qtr | 337 Cr. |
| RSI | 73.8 | MACD | 29.4 | Volume | 99,14,939 | Avg Vol 1Wk | 41,47,361 |
| Low price | 526 ₹ | High price | 938 ₹ | PEG Ratio | 4.95 | Debt to equity | 0.01 |
| 52w Index | 99.3 % | Qtr Profit Var | 49.4 % | EPS | 8.36 ₹ | Industry PE | 36.6 |
📈 Chart & Trend Analysis: CGPOWER is trading at ₹935, above both its 50 DMA (₹796) and 200 DMA (₹721), indicating strong bullish momentum. RSI at 73.8 suggests overbought conditions, signaling caution for fresh entries. MACD at 29.4 shows positive divergence, confirming upward bias. Bollinger Bands place the price near the upper band, highlighting strong momentum but also potential resistance around recent highs.
📊 Volume Trends: Current volume (99,14,939) is significantly higher than the 1-week average (41,47,361), reflecting strong participation and institutional activity driving the rally.
🔑 Support & Resistance: Strong support lies at ₹796 (50 DMA) and ₹721 (200 DMA). Resistance is near ₹938 (recent high). Optimal entry zone: ₹880–₹900. Exit/profit booking zone: ₹930–₹940.
📉 Momentum Signals: RSI indicates overheated momentum, while MACD confirms bullish strength. Short-term signals favor cautious accumulation on dips rather than chasing highs.
📌 Trend Status: The stock is currently trending upward with strong momentum but nearing consolidation levels due to overbought RSI.
Positive ✅
- Price trading above both 50 DMA and 200 DMA confirms technical strength.
- Quarterly PAT improved (₹337 Cr → ₹412 Cr), showing strong earnings growth.
- ROCE (29.2%) and ROE (21.9%) highlight efficient capital use.
- Debt-to-equity ratio of 0.01 ensures financial stability.
Limitation ⚠️
- Extremely high P/E ratio (110) compared to industry average (36.6) suggests severe overvaluation.
- PEG ratio of 4.95 indicates expensive growth prospects.
- RSI above 70 signals overbought conditions, limiting immediate upside.
Company Negative News ❌
- Valuation concerns due to high P/E and PEG ratios.
Company Positive News 🌟
- DII holding increased (+0.49%), showing strong domestic institutional support.
- FII holding increased slightly (+0.01%), reflecting marginal foreign confidence.
- Quarterly profit variance (+49.4%) highlights operational improvement.
Industry 🏭
- Power and engineering sector trades at industry PE of 36.6, making CGPOWER relatively expensive compared to peers.
- Sector growth driven by infrastructure expansion and industrial demand.
Conclusion 📌
CGPOWER is trending upward with strong momentum, supported by earnings growth and institutional participation. However, valuations remain stretched and RSI signals caution. Optimal strategy: accumulate near ₹880–₹900 support zones and consider profit booking near ₹930–₹940. Trend remains bullish but consolidation is likely in the short term.
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