FINPIPE - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.0

📈 Technical Analysis

• 📉 Chart Pattern: FINPIPE is in a clear downtrend, forming lower highs and lower lows since peaking at 311 ₹.
• 📉 Moving Averages: Price is trading below both 50-DMA (199 ₹) and 200-DMA (210 ₹), confirming bearish sentiment.
• 📉 RSI (31.9): Approaching oversold territory, indicating weak momentum but potential for a technical bounce.
• 📉 MACD (-4.13): Negative crossover, reinforcing bearish momentum.
• 📉 Bollinger Bands: Price is near the lower band, suggesting oversold conditions but no reversal signal yet.
• 📉 Volume Trend: Current volume (7.23L) is above 1-week average (4.25L), possibly indicating panic selling or institutional exit.

📍 Entry & Exit Zones

• ✅ Entry Zone: 180 ₹ – 185 ₹ (near recent support and psychological level)
• 🚪 Exit Zone: 200 ₹ – 210 ₹ (resistance from 50-DMA and 200-DMA)

📊 Trend Status

• 📉 Current Trend: Reversing from uptrend to short-term bearish
• ⚠️ Bias: Bearish unless RSI rebounds above 40 and MACD flattens

✅ Positive

• Low debt-to-equity ratio (0.04) indicates financial prudence.
• Dividend yield of 1.05% offers some income cushion.
• Price nearing oversold levels — potential for technical bounce if supported by volume.

⚠️ Limitation

• Price trading below both key moving averages — weak technical structure.
• MACD and RSI both signal bearish momentum.
• PEG ratio (-1.58) and declining PAT suggest growth concerns.

📉 Company Negative News

• Quarterly PAT dropped from 150 Cr. to 96.9 Cr. — a 45.8% decline.
• FII holding decreased by 0.10%, indicating reduced foreign investor confidence.

📈 Company Positive News

• DII holding increased by 0.75%, showing some domestic institutional support.

🏭 Industry

• Plastic piping and infrastructure sector remains cyclical, with demand tied to construction and agriculture.
• FINPIPE trades above industry PE (31.6 vs 23.2), suggesting overvaluation amid earnings pressure.

🧾 Conclusion

• FINPIPE is reversing from recent highs with bearish technical indicators and valuation concerns.
• Short-term traders may consider entries near 180 ₹ and exits near 210 ₹.
• Long-term investors should wait for earnings stability and technical confirmation before re-entry.