HEG - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | HEG | Market Cap | 11,227 Cr. | Current Price | 582 ₹ | High / Low | 690 ₹ |
| Stock P/E | 62.1 | Book Value | 223 ₹ | Dividend Yield | 0.31 % | ROCE | 5.76 % |
| ROE | 4.27 % | Face Value | 2.00 ₹ | DMA 50 | 588 ₹ | DMA 200 | 548 ₹ |
| Chg in FII Hold | 1.71 % | Chg in DII Hold | -3.52 % | PAT Qtr | -163 Cr. | PAT Prev Qtr | 141 Cr. |
| RSI | 43.5 | MACD | -2.93 | Volume | 11,71,168 | Avg Vol 1Wk | 10,02,436 |
| Low price | 460 ₹ | High price | 690 ₹ | PEG Ratio | -2.34 | Debt to equity | 0.18 |
| 52w Index | 52.9 % | Qtr Profit Var | -165 % | EPS | 9.36 ₹ | Industry PE | 38.8 |
📊 HEG is trading at 582 ₹, near its 50 DMA (588 ₹) and above the 200 DMA (548 ₹), reflecting short-term indecision but medium-term support. RSI at 43.5 indicates weak momentum, while MACD at -2.93 is negative, confirming bearish undertones. Bollinger Bands show price drifting toward the lower band, suggesting downside pressure. Current volume (11,71,168) is slightly above the 1-week average (10,02,436), showing moderate participation but not strong accumulation.
- 💰 Optimal Buy Price: 570 – 580 ₹ (support near DMA levels)
- 📈 Profit-Taking Exit Levels: 610 ₹ (first resistance), 640 – 660 ₹ (trendline resistance)
- 📉 Stop-Loss / Loss Protection: 560 ₹ (below support)
- ⏱️ Trend Status: Consolidating with bearish bias; reversal possible only if price sustains above 610 ₹.
Positive
✅ Price above 200 DMA confirms medium-term support.
✅ EPS at 9.36 ₹ provides earnings base.
✅ FII holdings increased (+1.71%), showing foreign investor confidence.
✅ Debt-to-equity at 0.18 indicates manageable leverage.
✅ Industry demand recovery supports sector outlook.
Limitation
⚠️ Price below 50 DMA signals short-term weakness.
⚠️ RSI below 50 reflects weak momentum.
⚠️ MACD negative crossover confirms bearish undertone.
⚠️ Sequential PAT decline (-163 Cr. vs 141 Cr.) shows earnings pressure.
⚠️ ROCE (5.76%) and ROE (4.27%) are weak compared to peers.
⚠️ P/E (62.1) is significantly higher than industry average (38.8), showing overvaluation.
Company Negative News
🚫 Sharp quarterly loss raises profitability concerns.
🚫 Domestic institutional selling (-3.52%) adds downside risk.
🚫 Weak return ratios limit attractiveness.
Company Positive News
🌟 FII inflows provide momentum support.
🌟 Technical support from 200 DMA.
🌟 Sector demand recovery offers medium-term potential.
Industry
🏭 Industry P/E at 38.8 is lower than HEG’s 62.1, showing relative overvaluation.
🏭 Graphite electrode sector outlook remains positive with demand recovery in steel production.
Conclusion
📌 HEG is consolidating with bearish bias, pressured by weak fundamentals and negative momentum. Entry near 570 – 580 ₹ offers cautious positioning, while exits at 610 – 660 ₹ should be monitored. Stop-loss protection at 560 ₹ is advised. Despite sector recovery, stretched valuations and losses limit near-term upside.
Would you like me to extend this into a swing trade overlay for 1–2 week holding logic, or keep the focus strictly on this intraday technical view?