HEG - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.3

📈 Technical Analysis

• 📈 Chart Pattern: HEG is in a strong uptrend, forming higher highs and higher lows, with price approaching its 52-week high of 622 ₹.
• 📈 Moving Averages: Price is well above both 50-DMA (521 ₹) and 200-DMA (490 ₹), confirming bullish momentum.
• 📈 RSI (76.4): In overbought zone, indicating strong momentum but caution for short-term pullback.
• 📈 MACD (15.3): Strong positive crossover, reinforcing bullish trend strength.
• 📈 Bollinger Bands: Price near upper band, suggesting breakout potential with elevated volatility.
• 📉 Volume Trend: Current volume (11.93L) is below 1-week average (39.74L), indicating reduced participation — a cautionary signal.

📍 Entry & Exit Zones

• ✅ Entry Zone: 540 ₹ – 560 ₹ (near breakout retest and psychological support)
• 🚪 Exit Zone: 615 ₹ – 625 ₹ (resistance from 52-week high)

📊 Trend Status

• 📈 Current Trend: Trending upward
• ⚠️ Bias: Bullish with caution due to high RSI and low volume

✅ Positive

• Price above key moving averages supports bullish structure.
• FII and DII holdings increased by 0.68% and 0.39%, indicating strong institutional confidence.
• MACD and RSI confirm upward momentum.
• Quarterly PAT improved from -61.7 Cr. to 71.8 Cr., showing a 2,683% turnaround.

⚠️ Limitation

• Volume below average — momentum may not be fully supported.
• PEG ratio (-2.29) suggests valuation concerns relative to growth.
• ROCE (5.19%) and ROE (3.40%) are modest for the sector.

📉 Company Negative News

• High P/E (66.1) compared to industry PE (39.9) suggests premium valuation and potential overpricing.

📈 Company Positive News

• Strong quarterly earnings recovery and rising institutional interest support bullish outlook.

🏭 Industry

• Graphite and electrode sector is cyclical, influenced by global steel demand and commodity pricing.
• HEG trades above industry PE (66.1 vs 39.9), reflecting growth expectations and premium positioning.

🧾 Conclusion

• HEG is trending upward with bullish technical indicators and strong earnings recovery.
• Short-term traders may consider entries near 550 ₹ and exits near 620 ₹.
• Long-term investors should monitor volume strength and valuation metrics before adding exposure.