COHANCE - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.4

📉 COHANCE is currently in a reversing phase, with bearish momentum indicators and price action significantly below key moving averages.

📊 Technical Overview

• Trend Status: Reversing — price has dropped sharply from its 52-week high of ₹1,360 to ₹744, nearing its yearly low.
• Moving Averages: Current price is below both 50 DMA (₹895) and 200 DMA (₹985), confirming a strong downtrend.
• RSI (26.4): Deep in oversold territory, indicating weak momentum and potential for a technical bounce.
• MACD (-29.7): Strong negative crossover supports continued bearish pressure.
• Bollinger Bands: Price near lower band, suggesting volatility and possible short-term support.
• Volume: Below average (19.2L vs 28.6L), indicating fading interest and weak participation.

📌 Entry & Exit Zones

• Support Zone: ₹730–₹750 — potential entry zone if reversal signals emerge.
• Resistance Zone: ₹880–₹900 — ideal for exit or partial profit booking.
• Breakout Level: ₹985 — crossing 200 DMA could signal trend recovery.

✅ Positive

• Low debt-to-equity ratio (0.04) supports financial stability.
• ROCE (16.0%) and ROE (12.5%) indicate decent capital efficiency.
• Strong DII holding increase (+9.41%) reflects domestic institutional confidence.

⚠️ Limitation

• Price trading far below key moving averages with bearish momentum indicators.
• High P/E (80.5) and negative PEG ratio (-3.90) suggest overvaluation and weak growth expectations.
• Quarterly PAT dropped from ₹134 Cr to ₹58.6 Cr, indicating operational pressure.

📰 Company Negative News

• Decline in FII holdings (-0.72%) may reflect cautious foreign sentiment.
• Quarterly profit contraction of 22.4% and low 52-week index (1.52%) signal underperformance.

🌟 Company Positive News

• Strong domestic institutional support and low leverage position.

🏭 Industry

• Operates in a tech-driven sector, sensitive to innovation cycles and global demand shifts.
• Industry P/E (33.1) is significantly lower than the stock’s, indicating valuation premium.

🧾 Conclusion

• COHANCE is technically weak in the short term with bearish indicators and declining price action.
• Entry near ₹730–₹750 only if reversal signs strengthen; watch for breakout above ₹985.
• Long-term investors should evaluate fundamentals carefully; short-term traders should remain cautious.