HAVELLS - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.6

📉 Havells India is currently in a consolidation phase with weakening momentum and bearish technical indicators.

📊 Technical Analysis

• Trend Status: Consolidating — price is range-bound between ₹1,360 and ₹1,783.
• Moving Averages: Price ₹1,497 is below both 50-DMA (₹1,515) and 200-DMA (₹1,557), indicating short-term bearishness.
• RSI (46.8): Neutral zone, suggesting lack of strong momentum.
• MACD (-8.26): Bearish crossover, confirming downward pressure.
• Bollinger Bands: Price near lower band, indicating possible support around ₹1,460–₹1,480.
• Volume: Recent volume (11.7L) is above weekly average (8.6L), but trend is declining, showing reduced buying interest.

🎯 Entry & Exit Zones

• Support Levels: ₹1,460 and ₹1,360
• Resistance Levels: ₹1,515 (50-DMA), ₹1,557 (200-DMA), ₹1,600
• Optimal Entry: ₹1,460–₹1,480 (near support)
• Exit Target: ₹1,600–₹1,650 (near resistance)

✅ Positive

• Strong ROCE (25.6%) and ROE (19%) reflect solid financial efficiency.
• Low debt-to-equity ratio (0.03) indicates robust balance sheet.
• EPS of ₹23.5 and consistent profitability support long-term fundamentals.

⚠️ Limitation

• High P/E (63.7) and PEG (8.09) suggest overvaluation compared to industry average.
• MACD and RSI show weakening momentum, limiting upside potential.
• Stock trading below key moving averages, signaling short-term weakness.

📉 Company Negative News

• Quarterly PAT declined from ₹352 Cr to ₹317 Cr, indicating margin pressure.
• Foreign institutional investors reduced holdings by 2.31%.

📈 Company Positive News

• Domestic institutional investors increased holdings by 2.17%, showing local confidence.
• Strong demand in consumer electricals segment continues to support revenue.

🏭 Industry

• Consumer durables sector remains resilient with rising urban and rural demand.
• Industry P/E (26.3) is significantly lower than Havells, highlighting premium valuation.

🧾 Conclusion

• Havells is technically consolidating with bearish momentum signals.
• Short-term traders may consider entry near ₹1,460 with exit near ₹1,600.
• Long-term investors should monitor valuation and earnings trajectory closely.