CLEAN - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.7

📊 Chart Patterns: CLEAN is trading below both its 50 DMA (967 ₹) and 200 DMA (1,159 ₹), showing bearish undertone. Current price (899 ₹) is near support levels, indicating consolidation after a steep decline from highs (1,600 ₹).

📈 Moving Averages: Price < 50 DMA < 200 DMA → bearish alignment. Trend remains weak until price crosses 967–1,159 ₹.

📉 RSI: At 42.7, RSI is neutral-to-oversold, suggesting limited buying strength but potential rebound near support.

📉 MACD: Negative (-18.7), confirming bearish crossover and weak short-term momentum.

📊 Bollinger Bands: Price near lower band, suggesting oversold conditions and possible mean reversion.

📊 Volume Trends: Current volume (3,43,622) is significantly higher than 1-week average (1,78,745), showing strong activity, likely on the downside.

📍 Support & Resistance:

- Strong support: 874 ₹

- Immediate resistance: 967 ₹ (50 DMA)

- Major resistance: 1,159 ₹ (200 DMA)

🚦 Momentum Signals: Short-term momentum is weak but oversold. Entry zone: 880–900 ₹ near support. Exit zone: 950–970 ₹ if resistance is tested. Breakout above 1,000–1,050 ₹ would confirm reversal attempt.

🔄 Trend Status: The stock is consolidating with bearish bias, oversold but not yet reversing.

Positive

• Debt-free company (Debt-to-equity: 0.00).
• Strong ROCE (29.3%) and ROE (21.9%) indicate efficient capital use.
• EPS of 27.7 ₹ supports valuation comfort.
• FII holdings increased (+4.93%) and DII holdings surged (+13.0%), showing strong institutional support.

Limitation

• Stock trading below both 50 DMA and 200 DMA, showing weak technical strength.
• MACD negative, confirming bearish momentum.
• PEG ratio (3.81) suggests expensive valuation relative to growth.

Company Negative News

• Quarterly PAT declined to 64.6 Cr. from 76.6 Cr. (-4.15% variation).
• Price correction from 1,600 ₹ to 899 ₹ indicates investor caution.

Company Positive News

• Strong institutional support with FII and DII holdings increasing significantly.
• Debt-free balance sheet ensures financial stability.

Industry

• Industry PE at 26.6 is lower than CLEAN’s PE (32.5), showing relative overvaluation.
• Renewable/clean energy sector benefits from long-term demand growth, though cyclical earnings may affect valuations.

Conclusion

⚖️ CLEAN is consolidating with bearish bias, trading below key moving averages but oversold on RSI. Entry near 880–900 ₹ could be considered for short-term gains, with exit around 950–970 ₹. A breakout above 1,000–1,050 ₹ would confirm reversal. Strong fundamentals and debt-free status support long-term holding, but near-term weakness due to declining profits and overvaluation persists.