COFORGE - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.8

📈 COFORGE is currently in a trending phase, supported by bullish momentum indicators and price action above key moving averages.

📊 Technical Overview

• Trend Status: Trending upward — price has risen from ₹1,191 to ₹1,796, approaching its 52-week high of ₹2,005.
• Moving Averages: Price is above both 50 DMA (₹1,731) and 200 DMA (₹1,668), confirming bullish sentiment.
• RSI (56.0): Mid-range, indicating healthy momentum with room for further upside.
• MACD (27.9): Strong positive crossover supports continued bullish momentum.
• Bollinger Bands: Price near upper band, suggesting strength and potential breakout.
• Volume: Below average (7.25L vs 15.24L), indicating cautious participation despite price strength.

📌 Entry & Exit Zones

• Support Zone: ₹1,730–₹1,750 — ideal for entry on pullbacks.
• Resistance Zone: ₹1,980–₹2,005 — potential exit or partial profit booking zone.
• Breakout Level: ₹2,005 — crossing this could lead to new highs.

✅ Positive

• Quarterly PAT surged from ₹151 Cr to ₹332 Cr, showing strong operational performance.
• EPS of ₹20.9 and ROCE (13.9%) reflect solid profitability.
• Price action above key moving averages with bullish MACD and RSI.
• Positive DII holding change (+2.55%) shows domestic institutional confidence.

⚠️ Limitation

• High P/E (86.0) and negative PEG ratio (-11.7) suggest overvaluation concerns.
• ROE (11.3%) is modest compared to industry leaders.
• Volume below average, indicating limited conviction in the current rally.

📰 Company Negative News

• Decline in FII holdings (-3.33%) may reflect foreign investor caution.

🌟 Company Positive News

• Strong quarterly profit growth (44.8%) and consistent earnings performance.
• Domestic institutions increasing stake, signaling long-term confidence.

🏭 Industry

• Operates in IT services and digital transformation, a sector driven by global tech demand and outsourcing trends.
• Industry P/E (29.6) is significantly lower than the stock’s, indicating valuation premium.

🧾 Conclusion

• COFORGE is technically strong with bullish indicators and improving fundamentals.
• Entry near ₹1,730–₹1,750 is favorable; watch for breakout above ₹2,005.
• Long-term investors may benefit from growth momentum; short-term traders should monitor volume and resistance levels.