CYIENT - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.0

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

📊 Technical Overview

• Trend Status: Reversing — price has dropped from ₹2,112 to ₹1,161, hovering near its recent low of ₹1,050.
• Moving Averages: Price is below both 50 DMA (₹1,193) and 200 DMA (₹1,327), confirming a bearish trend.
• RSI (45.0): Neutral zone, but trending lower, indicating weakening momentum.
• MACD (-1.93): Negative crossover supports continued bearish pressure.
• Bollinger Bands: Price near lower band, suggesting oversold conditions and potential short-term support.
• Volume: Below average (3.08L vs 3.80L), indicating reduced participation and cautious sentiment.

📌 Entry & Exit Zones

• Support Zone: ₹1,050–₹1,100 — potential entry zone if reversal signals emerge.
• Resistance Zone: ₹1,190–₹1,220 — ideal for exit or partial profit booking.
• Breakout Level: ₹1,327 — crossing 200 DMA could signal trend recovery.

✅ Positive

• Strong ROCE (15.6%) and ROE (13.2%) reflect efficient capital use.
• Low debt-to-equity ratio (0.02) supports financial stability.
• EPS of ₹40.8 and consistent dividend yield (2.18%).
• Positive DII holding change (+2.79%) shows domestic institutional confidence.

⚠️ Limitation

• Price trading below key moving averages with bearish MACD and weakening RSI.
• Negative PEG ratio (-3.67) and low 52-week index (10.5%) indicate underperformance and valuation concerns.
• Volume below average, suggesting limited conviction in current price action.

📰 Company Negative News

• Quarterly PAT dropped from ₹119 Cr to ₹128 Cr, with a profit variation of -20.3%.
• Decline in FII holdings (-3.81%) may reflect foreign investor caution.

🌟 Company Positive News

• Stable earnings and strong fundamentals with low leverage.
• Domestic institutions increasing stake, signaling long-term confidence.

🏭 Industry

• Operates in IT services and engineering solutions, a sector driven by global tech demand and outsourcing trends.
• Industry P/E (34.2) is higher than the stock’s (29.5), suggesting potential undervaluation.

🧾 Conclusion

• CYIENT is technically weak in the short term with bearish indicators and declining price action.
• Entry near ₹1,050–₹1,100 only if reversal signs strengthen; watch for breakout above ₹1,327.
• Long-term investors may hold for fundamentals and sector potential; short-term traders should remain cautious.