HAVELLS - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.6

📊 Chart Patterns: Havells is trading below both its 50 DMA (1,452 ₹) and 200 DMA (1,522 ₹), indicating short-term weakness. The price is near support at 1,360 ₹, with resistance around 1,450–1,520 ₹.

📈 Moving Averages: Bearish crossover as the stock is below key averages. Trend bias remains weak unless price sustains above 1,452 ₹.

📉 RSI: At 40.1, RSI suggests the stock is approaching oversold territory but not yet deeply oversold. Momentum is weak.

📉 MACD: Negative at -16.0, confirming bearish momentum and lack of strong reversal signals yet.

📊 Bollinger Bands: Price is closer to the lower band, suggesting potential short-term bounce but overall consolidation.

📉 Volume Trends: Current volume (2,29,960) is below average weekly volume (4,10,864), showing lack of strong buying interest.

📌 Short-term Momentum Signals: Weak momentum with possible bounce near 1,360 ₹ support. Sustained move above 1,452 ₹ could trigger recovery toward 1,520 ₹.

🎯 Optimal Entry Zone: 1,365–1,380 ₹ (near support).

🎯 Optimal Exit Zone: 1,500–1,520 ₹ (near resistance).

📉 Trend Status: The stock is consolidating with a bearish bias, not yet reversing upward.

Positive

• Strong ROCE (25.6%) and ROE (19.0%) indicate efficient capital use.
• Low debt-to-equity ratio (0.03) ensures financial stability.
• Consistent dividend yield (0.71%) adds investor confidence.

Limitation

• High P/E (60.1) compared to industry average (28.0) makes valuation expensive.
• PEG ratio of 7.64 suggests limited growth relative to valuation.
• Stock trading below both 50 DMA and 200 DMA indicates weak technical strength.

Company Negative News

• Decline in quarterly PAT (317 Cr. vs 352 Cr.) shows earnings pressure.
• FII holding decreased by -2.31%, signaling reduced foreign investor confidence.

Company Positive News

• DII holding increased by 2.17%, showing domestic institutional support.
• Quarterly profit variation of 16.5% indicates resilience despite earnings dip.

Industry

• Industry PE at 28.0 is significantly lower than Havells’ PE, highlighting overvaluation risk.
• Electrical equipment sector remains in demand due to infrastructure and housing growth.

Conclusion

⚖️ Havells is fundamentally strong with robust ROCE/ROE and low debt, but technically weak in the short term. The stock is consolidating near support levels with bearish signals from RSI and MACD. Entry is favorable near 1,365–1,380 ₹ with cautious exit around 1,500–1,520 ₹. Long-term investors may hold, but short-term traders should wait for confirmation above 1,452 ₹.