COFORGE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | COFORGE | Market Cap | 38,012 Cr. | Current Price | 1,132 ₹ | High / Low | 1,994 ₹ |
| Stock P/E | 52.3 | Book Value | 179 ₹ | Dividend Yield | 1.34 % | ROCE | 13.9 % |
| ROE | 11.3 % | Face Value | 2.00 ₹ | DMA 50 | 1,383 ₹ | DMA 200 | 1,598 ₹ |
| Chg in FII Hold | 0.44 % | Chg in DII Hold | -1.20 % | PAT Qtr | 133 Cr. | PAT Prev Qtr | 332 Cr. |
| RSI | 30.1 | MACD | -103 | Volume | 70,17,475 | Avg Vol 1Wk | 48,96,611 |
| Low price | 1,008 ₹ | High price | 1,994 ₹ | PEG Ratio | -7.13 | Debt to equity | 0.08 |
| 52w Index | 12.6 % | Qtr Profit Var | 25.5 % | EPS | 20.3 ₹ | Industry PE | 20.9 |
📈 Chart & Trend: COFORGE is trading at ₹1,132, well below both its 50 DMA (₹1,383) and 200 DMA (₹1,598). This indicates strong short-term and medium-term weakness, with the stock trending downward.
📊 Momentum Indicators:
- RSI at 30.1 suggests oversold conditions, potential for rebound.
- MACD at -103 shows bearish crossover, confirming strong short-term weakness.
- Bollinger Bands: Price near lower band, indicating possible mean reversion.
- Volume: Current volume (70.2 lakh) is higher than 1-week average (49 lakh), showing strong participation despite weakness.
🔑 Support & Resistance:
- Support zone: ₹1,100–₹1,120
- Resistance zone: ₹1,380–₹1,400 (near 50 DMA)
- Breakout resistance: ₹1,580–₹1,600 (near 200 DMA)
- Long-term support: ₹1,008
📌 Entry & Exit Zones:
- Entry: ₹1,100–₹1,130 (near support)
- Exit: ₹1,380–₹1,580 (resistance zone)
- Stop-loss: ₹1,080
📉 Trend Status: Strong bearish consolidation. Needs a breakout above ₹1,383–₹1,598 to confirm reversal and trend continuation.
Positive
- ROCE at 13.9% and ROE at 11.3% reflect moderate operational efficiency.
- Debt-to-equity ratio of 0.08 indicates low leverage.
- DII holdings increased by 0.44%, showing foreign investor confidence.
- Dividend yield of 1.34% provides income support.
Limitation
- Stock trading well below both 50 DMA and 200 DMA indicates weakness.
- Quarterly PAT declined sharply (₹133 Cr vs ₹332 Cr), showing earnings pressure.
- DII holdings decreased by 1.20%, showing reduced domestic confidence.
- PEG ratio of -7.13 highlights poor growth relative to valuation.
- High P/E of 52.3 compared to industry PE of 20.9 indicates premium valuation.
Company Negative News
- No major recent negative news reported, but sharp earnings decline and reduced DII holdings are concerns.
Company Positive News
- Debt-free status strengthens financial stability.
- Dividend yield supports investor confidence.
- FII inflows indicate growing foreign confidence.
Industry
- Industry PE at 20.9 vs stock PE at 52.3 shows COFORGE trades at a significant premium.
- IT services sector supported by digital transformation demand, though margin pressures and global slowdown risks remain.
Conclusion
⚡ COFORGE is in a bearish consolidation phase, trading well below key moving averages. Entry near ₹1,100–₹1,130 offers margin of safety, with exit targets around ₹1,380–₹1,580. Strong fundamentals and low debt support long-term prospects, but sharp earnings decline, premium valuation, and weak momentum indicators pose short-term risks.
Would you like me to extend this into a peer benchmarking overlay comparing COFORGE with Infosys, LTIMindtree, and Mphasis to highlight relative strength, valuation gaps, and sector rotation opportunities?