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CYIENT - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.5

Last Updated Time : 04 May 26, 11:56 am

Technical Rating: 3.5

Stock Code CYIENT Market Cap 9,687 Cr. Current Price 872 ₹ High / Low 1,377 ₹
Stock P/E 30.3 Book Value 323 ₹ Dividend Yield 2.98 % ROCE 16.8 %
ROE 8.70 % Face Value 5.00 ₹ DMA 50 919 ₹ DMA 200 1,096 ₹
Chg in FII Hold 0.05 % Chg in DII Hold 1.47 % PAT Qtr 78.4 Cr. PAT Prev Qtr 89.5 Cr.
RSI 46.3 MACD -2.09 Volume 6,31,956 Avg Vol 1Wk 7,55,730
Low price 750 ₹ High price 1,377 ₹ PEG Ratio -13.1 Debt to equity 0.01
52w Index 19.4 % Qtr Profit Var -34.3 % EPS 13.9 ₹ Industry PE 26.0

📊 CYIENT is trading below both its 50 DMA (919 ₹) and 200 DMA (1,096 ₹), signaling weak technical structure. RSI at 46.3 indicates neutral-to-bearish momentum, while MACD at -2.09 confirms negative crossover. Current volume (6,31,956) is lower than average (7,55,730), showing reduced participation. Bollinger Bands suggest price leaning toward the lower band, pointing to consolidation with bearish bias.

🎯 Entry Zone: 860 ₹ – 880 ₹ (support near 872 ₹)

💰 Exit Zone: 940 ₹ – 960 ₹ (resistance near 960 ₹)

🔄 Trend Status: Consolidating with bearish undertones

Positive

  • Dividend yield of 2.98% adds investor appeal.
  • Low debt-to-equity ratio (0.01) ensures financial stability.
  • DII holdings increased (+1.47%), reflecting domestic institutional confidence.
  • EPS of 13.9 ₹ provides earnings visibility.

Limitation

  • Trading below both 50 DMA and 200 DMA indicates weak technical structure.
  • ROE (8.70%) and ROCE (16.8%) are modest compared to peers.
  • Quarterly PAT decline (89.5 Cr → 78.4 Cr) highlights earnings pressure.
  • PEG ratio (-13.1) reflects poor growth-adjusted valuation.

Company Negative News

  • Sequential profit decline (-34.3%) raises concerns about operational performance.
  • FII holdings showed only marginal increase (+0.05%), reflecting cautious foreign sentiment.

Company Positive News

  • DII inflows (+1.47%) show strong domestic institutional support.
  • Dividend yield and low debt profile support long-term stability.

Industry

  • Industry PE at 26.0 is lower than CYIENT’s P/E (30.3), suggesting relative overvaluation.
  • IT services sector faces cyclical earnings pressure but retains long-term demand potential.

Conclusion

⚖️ CYIENT is consolidating with bearish undertones, trading below key moving averages. Short-term trades should focus on entry near 860–880 ₹ with exits around 940–960 ₹. Sustained recovery above 50 DMA is required for trend reversal. Long-term investors may hold due to dividend yield and low debt, but caution is warranted given weak profitability and declining earnings.

This is the short-term technical view. If you’d like, I can also prepare a long-term investment outlook for CYIENT, focusing on growth sustainability, dividend strength, and sector benchmarking.

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