COFORGE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.1
| Stock Code | COFORGE | Market Cap | 59,599 Cr. | Current Price | 1,387 ₹ | High / Low | 1,994 ₹ |
| Stock P/E | 39.1 | Book Value | 252 ₹ | Dividend Yield | 1.09 % | ROCE | 21.7 % |
| ROE | 21.5 % | Face Value | 2.00 ₹ | DMA 50 | 1,308 ₹ | DMA 200 | 1,477 ₹ |
| Chg in FII Hold | -11.2 % | Chg in DII Hold | -9.25 % | PAT Qtr | 590 Cr. | PAT Prev Qtr | 181 Cr. |
| RSI | 59.2 | MACD | 44.5 | Volume | 18,31,619 | Avg Vol 1Wk | 20,55,796 |
| Low price | 1,008 ₹ | High price | 1,994 ₹ | PEG Ratio | 1.57 | Debt to equity | 0.03 |
| 52w Index | 38.4 % | Qtr Profit Var | 309 % | EPS | 41.5 ₹ | Industry PE | 21.0 |
📊 Chart Patterns & Trend: COFORGE is consolidating after a decline from its 1,994 ₹ high. Current price (1,387 ₹) is above the 50 DMA (1,308 ₹) but below the 200 DMA (1,477 ₹), showing short-term strength but medium-term resistance. Support lies near 1,350–1,370 ₹, with resistance at 1,420–1,450 ₹. Trendlines suggest sideways consolidation with mild bullish undertone.
📈 Moving Averages: Price above 50 DMA indicates short-term bullishness, but trading below 200 DMA signals medium-term caution.
📉 RSI: At 59.2, RSI is moderately bullish, leaving room for further upside before overbought conditions.
📈 MACD: Strongly positive (44.5), confirming bullish momentum.
📊 Bollinger Bands: Price is near the mid-to-upper band, suggesting consolidation with potential breakout.
📊 Volume Trends: Current volume (18,31,619) is slightly below the 1-week average (20,55,796), showing moderate participation.
💡 Momentum Signals: Bullish bias. A breakout above 1,420–1,450 ₹ could trigger upside toward 1,500–1,550 ₹, while breakdown below 1,350 ₹ risks further decline.
🎯 Entry Zone: 1,350–1,370 ₹ (support region).
🎯 Exit Zone: 1,420–1,450 ₹ (resistance region; extended target 1,500–1,550 ₹).
📌 Status: Consolidating with bullish bias.
Positive
✔ EPS of 41.5 ₹ supports valuation strength.
✔ Strong ROCE (21.7%) and ROE (21.5%).
✔ Debt-to-equity ratio of 0.03 indicates negligible leverage.
✔ Quarterly PAT growth (590 Cr. vs 181 Cr.) highlights earnings momentum.
Limitation
⚠ Price trading below 200 DMA, showing medium-term resistance.
⚠ FII holdings decreased (-11.2%) and DII holdings decreased (-9.25%), showing reduced institutional confidence.
⚠ High P/E (39.1) compared to industry PE (21.0), suggesting overvaluation.
⚠ Volume below average, limiting breakout strength.
Company Negative News
⚠ Institutional outflows (FII and DII) highlight weaker sentiment.
⚠ Valuation premium relative to industry peers.
Company Positive News
✔ PAT growth of 309% highlights strong profitability momentum.
✔ Dividend yield of 1.09% adds investor appeal.
✔ Debt-free balance sheet supports financial stability.
Industry
💻 IT services sector benefits from digital transformation demand and outsourcing growth.
📈 Industry PE (21.0) lower than COFORGE’s PE (39.1), suggesting premium valuation relative to peers.
Conclusion
📌 COFORGE is consolidating near support with bullish undertone. Entry around 1,350–1,370 ₹ offers favorable risk-reward, while exits near 1,420–1,450 ₹ are prudent unless momentum strengthens for a breakout toward 1,500–1,550 ₹. Long-term investors should monitor valuation risks and institutional flows, while traders may exploit short-term consolidation opportunities.
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