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CGPOWER - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.1

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

Technical Rating: 3.1

Stock Code CGPOWER Market Cap 95,809 Cr. Current Price 608 ₹ High / Low 798 ₹
Stock P/E 79.3 Book Value 48.7 ₹ Dividend Yield 0.22 % ROCE 35.8 %
ROE 26.0 % Face Value 2.00 ₹ DMA 50 631 ₹ DMA 200 672 ₹
Chg in FII Hold -1.00 % Chg in DII Hold 1.26 % PAT Qtr 337 Cr. PAT Prev Qtr 307 Cr.
RSI 48.0 MACD -19.2 Volume 1,62,83,271 Avg Vol 1Wk 98,88,775
Low price 518 ₹ High price 798 ₹ PEG Ratio 2.57 Debt to equity 0.01
52w Index 32.4 % Qtr Profit Var 38.1 % EPS 7.60 ₹ Industry PE 35.4

📈 Technical Analysis

  • Chart Patterns: Stock has corrected from highs (798 ₹) and is trading at 608 ₹, showing weakness but holding above long-term support zones.
  • Moving Averages: Current price is below both 50 DMA (631 ₹) and 200 DMA (672 ₹), confirming short-term bearish bias.
  • RSI: At 48.0, stock is neutral, suggesting balanced momentum.
  • MACD: Negative (-19.2), showing mild bearish divergence.
  • Bollinger Bands: Price near mid-band, indicating sideways consolidation.
  • Volume Trends: Current volume (1,62,83,271) is significantly higher than average weekly volume (98,88,775), showing strong participation and heightened activity.

🎯 Momentum & Trade Zones

  • Short-term Momentum: Neutral to mildly bearish, consolidation signals dominate.
  • Support Levels: 600 ₹ (near-term), 575 ₹ (major support), 518 ₹ (52-week low).
  • Resistance Levels: 631 ₹ (50 DMA), 672 ₹ (200 DMA), 700–720 ₹ (strong resistance).
  • Optimal Entry: 600–610 ₹ range on dips.
  • Optimal Exit: 650–670 ₹ unless breakout above 700–720 ₹ is confirmed.

📊 Trend Status

Stock is consolidating near support levels, with neutral RSI and bearish MACD suggesting sideways movement before a potential breakout.

✅ Positive

  • Strong ROCE (35.8%) and ROE (26.0%).
  • DII holding increased (+1.26%), showing domestic institutional confidence.
  • Quarterly PAT improved (337 Cr. vs 307 Cr.), highlighting earnings strength.
  • Debt-to-equity ratio at 0.01, indicating strong financial stability.

⚠️ Limitation

  • High valuation with P/E of 79.3 vs industry average of 35.4.
  • PEG ratio of 2.57 indicates expensive valuation relative to growth.
  • Stock trading below both 50 DMA and 200 DMA, showing technical weakness.

📉 Company Negative News

  • FII holding decreased (-1.00%), showing reduced foreign investor confidence.
  • Stock corrected sharply from highs (798 ₹), showing technical weakness.

📈 Company Positive News

  • Quarterly profit growth (+38.1%) highlights strong earnings momentum.
  • DII holding increased (+1.26%), reflecting domestic investor support.

🏭 Industry

  • Electrical equipment & power sector trading at industry P/E of 35.4, lower than CG Power’s valuation.
  • Sector supported by infrastructure expansion, electrification, and industrial demand.

🔎 Conclusion

CG Power is technically consolidating with neutral RSI and bearish MACD. Traders may consider entry around 600–610 ₹ with exit near 650–670 ₹. Long-term investors should wait for breakout above 700–720 ₹ for bullish confirmation, given premium valuation despite strong earnings growth and robust fundamentals.

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