COALINDIA - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.9

📈 COALINDIA is currently in a consolidating phase, with neutral momentum indicators and price hovering near key moving averages.

📊 Technical Overview

• Trend Status: Consolidating — price is trading between 50 DMA (₹388) and 200 DMA (₹394), indicating indecision.
• Moving Averages: Current price (₹389) is slightly above 50 DMA and just below 200 DMA, suggesting a tight range.
• RSI (50.4): Neutral zone, indicating balanced momentum with no strong directional bias.
• MACD (0.44): Slightly positive, hinting at mild bullish undertone.
• Bollinger Bands: Price near mid-band, consistent with consolidation and low volatility.
• Volume: Below average (1.43 Cr vs 1.65 Cr), showing reduced trading activity and caution.

📌 Entry & Exit Zones

• Support Zone: ₹370–₹380 — ideal for accumulation if bullish signals strengthen.
• Resistance Zone: ₹400–₹415 — potential exit or partial profit booking zone.
• Breakout Level: ₹459 — crossing this could lead to new highs.

✅ Positive

• Exceptional ROCE (96.6%) and ROE (96.1%) reflect outstanding capital efficiency.
• High dividend yield (6.89%) supports income-focused investors.
• Low debt-to-equity ratio (0.03) indicates strong financial health.
• Quarterly PAT surged from ₹116 Cr to ₹8,342 Cr, showing massive operational turnaround.

⚠️ Limitation

• Price stuck between key moving averages, lacking clear trend direction.
• Volume below average, suggesting limited conviction in current price action.
• PEG ratio (0.75) indicates moderate valuation relative to growth.

📰 Company Negative News

• Minor decline in FII holdings (-0.20%) may reflect cautious foreign sentiment.

🌟 Company Positive News

• Quarterly profit growth of 102% and EPS of ₹34.5 signal strong earnings momentum.
• Positive DII holding change (+0.14%) shows domestic institutional confidence.

🏭 Industry

• Operates in coal mining and energy, a sector influenced by global commodity cycles and environmental regulations.
• Industry P/E (14.5) is higher than the stock’s (11.3), suggesting potential undervaluation.

🧾 Conclusion

• COALINDIA is technically consolidating with strong fundamentals and high dividend appeal.
• Entry near ₹370–₹380 is favorable; watch for breakout above ₹459.
• Long-term investors may benefit from earnings and yield; short-term traders should monitor volume and resistance levels.