FINPIPE - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.3

📊 Chart Patterns & Trend: FINPIPE is trading below both its 50 DMA (181 ₹) and 200 DMA (201 ₹), showing weakness. Support lies around 160–165 ₹, while resistance is seen near 175–180 ₹. The stock is in a bearish reversal phase with oversold signals emerging.

📈 Moving Averages: Current price (167 ₹) is below both 50 DMA and 200 DMA, indicating short-term and medium-term weakness.

📉 RSI: At 29.8, RSI suggests oversold conditions, signaling potential accumulation zones.

📉 MACD: Negative (-5.76) reflects bearish momentum, though a crossover could indicate reversal if buying volume increases.

📊 Bollinger Bands: Price is near the lower band, implying limited downside and potential rebound if demand picks up.

📊 Volume Trends: Current volume (3.48 lakh) is below the 1-week average (4.94 lakh), showing reduced participation and weak momentum.

🎯 Entry Zone: 160–165 ₹ (near support and oversold RSI)

🎯 Exit Zone: 175–180 ₹ (near resistance and upper band)

Positive

• Debt-free balance sheet (Debt-to-equity ratio 0.00) ensures financial stability.
• Dividend yield at 1.18% provides income appeal.
• Quarterly PAT growth from 96.9 Cr. to 119 Cr. shows earnings momentum.
• DII holdings increased by 0.75%, reflecting domestic institutional support.

Limitation

• P/E ratio (23.7) is aligned with industry average (23.4), offering limited valuation advantage.
• ROCE (8.77%) and ROE (6.76%) are modest, showing average capital efficiency.
• PEG ratio (-1.19) indicates poor alignment between growth and valuation.
• Weak trading volume reduces short-term momentum signals.

Company Negative News

• FII holdings decreased by 0.10%, showing reduced foreign investor confidence.
• Stock trading below both 50 DMA and 200 DMA indicates bearish sentiment.

Company Positive News

• Quarterly profit variation at 132% highlights strong earnings growth.
• EPS at 7.05 ₹ reflects steady profitability.

Industry

• Industry P/E at 23.4 indicates sector is fairly valued.
• Pipes and infrastructure sector demand expected to remain stable with construction and industrial growth.

Conclusion

⚖️ FINPIPE is in a bearish reversal phase with oversold RSI and weak momentum. Entry near 160–165 ₹ offers favorable risk-reward, while exits around 175–180 ₹ are optimal. Watch for MACD crossover and volume recovery to confirm a rebound from current weakness.