COFORGE - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.0

📊 Chart Patterns: COFORGE is trading above both its 50 DMA (1,825 ₹) and 200 DMA (1,719 ₹), showing bullish alignment. Current price (1,845 ₹) is consolidating near support after testing highs (2,005 ₹).

📈 Moving Averages: Price > 50 DMA > 200 DMA → bullish structure. Sustaining above 1,825 ₹ confirms strength; 1,719 ₹ acts as medium-term support.

📈 RSI: At 50.0, RSI is neutral, suggesting balanced momentum with room for further upside.

📈 MACD: Positive (11.8), confirming bullish crossover and short-term upward momentum.

📊 Bollinger Bands: Price near mid-band, indicating consolidation with potential breakout if volume strengthens.

📊 Volume Trends: Current volume (10,05,557) is above 1-week average (8,48,664), showing accumulation and strong participation.

📍 Support & Resistance:

- Strong support: 1,825 ₹ (50 DMA)

- Major support: 1,719 ₹ (200 DMA)

- Immediate resistance: 1,900–1,950 ₹

- Major resistance: 2,005 ₹ (recent high)

🚦 Momentum Signals: Short-term momentum is bullish. Entry zone: 1,820–1,840 ₹ near support. Exit zone: 1,900–1,950 ₹ if resistance is tested. Breakout above 2,005 ₹ would confirm continuation of uptrend.

📈 Trend Status: The stock is trending upward with bullish bias, supported by positive MACD and strong volume.

Positive

• Stock trading above both 50 DMA and 200 DMA, showing strong technical strength.
• MACD positive, confirming bullish momentum.
• Quarterly PAT growth (+44.8%) indicates strong earnings momentum.
• DII holdings increased (+2.55%), showing domestic institutional support.
• Debt-to-equity ratio of 0.08 indicates low leverage.

Limitation

• High P/E (88.3) compared to industry PE (26.4), showing significant overvaluation.
• PEG ratio (-12.0) suggests poor valuation relative to growth prospects.
• ROCE (13.9%) and ROE (11.3%) are moderate compared to peers.

Company Negative News

• FII holdings declined (-3.33%), showing reduced foreign investor confidence.

Company Positive News

• DII holdings increased (+2.55%), reflecting strong domestic institutional confidence.
• Quarterly PAT improved to 332 Cr. from 151 Cr., showing robust performance.

Industry

• Industry PE at 26.4 is far lower than COFORGE’s PE (88.3), showing sector trades at more reasonable valuations.
• IT services industry benefits from global digital transformation demand but faces margin pressures.

Conclusion

⚖️ COFORGE is trending upward with bullish bias, trading above key moving averages and supported by strong volume. Entry near 1,820–1,840 ₹ could be considered for short-term gains, with exit around 1,900–1,950 ₹. A breakout above 2,005 ₹ would confirm continuation of the uptrend. Fundamentals show strong earnings growth, but high valuation and declining FII interest remain concerns for long-term investors.