CGPOWER - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.6

📊 CGPOWER is currently consolidating with a bullish bias. The stock is trading above key moving averages, but MACD and RSI suggest short-term indecision. Volume has declined, indicating a pause in momentum.

📊 Technical Analysis Summary

• Trend Status: Consolidating
• RSI (47.6): Neutral — lacks strong directional momentum
• MACD (-3.09): Bearish crossover — short-term weakness
• Volume: ~37% below 1-week average — weak participation
• DMA 50 & 200: Price above both — confirms long-term bullish structure
• Bollinger Bands: Price near mid-band — no breakout signal

🎯 Entry & Exit Zones

• Support Levels: ₹735, ₹710, ₹693
• Resistance Levels: ₹765, ₹790, ₹811
• Optimal Entry: ₹735–₹745 (on dip)
• Exit Target: ₹790–₹811 (short-term resistance)

✅ Positive

• Strong ROCE (35.8%) and ROE (26.0%) — excellent capital efficiency
• EPS of ₹7.22 — solid earnings profile
• Price above 50 DMA and 200 DMA — confirms bullish bias
• FII holding increased by 0.35% — foreign investor confidence
• Debt-to-equity ratio of 0.01 — minimal leverage risk

⚠️ Limitation

• MACD negative — short-term momentum weakening
• RSI below 50 — lacks bullish strength
• Volume below average — weak conviction
• High P/E (105) and PEG (3.42) — valuation concerns

📉 Company Negative News

• DII holding declined by 0.07% — slight domestic investor caution
• Stock down ~8% from 52-week high — recent pullback

📈 Company Positive News

• Quarterly PAT improved from ₹286 Cr to ₹307 Cr — 38% YoY growth
• Strong long-term trend supported by fundamentals

🏭 Industry

• Sector: Capital Goods / Power Equipment
• Industry P/E: 51.6 vs CGPOWER’s P/E: 105 — significantly overvalued
• Sector outlook positive with infrastructure and energy investments driving demand

🧾 Conclusion

• CGPOWER is consolidating with a bullish long-term structure
• Entry near ₹735–₹745 with targets at ₹790–₹811
• Monitor MACD and volume for signs of momentum recovery
• Valuation remains elevated; suitable for momentum traders, long-term investors should assess earnings sustainability