HONAUT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | HONAUT | Market Cap | 25,845 Cr. | Current Price | 29,266 ₹ | High / Low | 41,600 ₹ |
| Stock P/E | 50.4 | Book Value | 4,738 ₹ | Dividend Yield | 0.36 % | ROCE | 18.4 % |
| ROE | 13.7 % | Face Value | 10.0 ₹ | DMA 50 | 31,618 ₹ | DMA 200 | 34,858 ₹ |
| Chg in FII Hold | 0.46 % | Chg in DII Hold | -0.46 % | PAT Qtr | 129 Cr. | PAT Prev Qtr | 120 Cr. |
| RSI | 31.8 | MACD | -682 | Volume | 8,171 | Avg Vol 1Wk | 4,134 |
| Low price | 29,085 ₹ | High price | 41,600 ₹ | PEG Ratio | 3.23 | Debt to equity | 0.02 |
| 52w Index | 1.45 % | Qtr Profit Var | -2.51 % | EPS | 571 ₹ | Industry PE | 28.0 |
📊 Chart & Trend Analysis: HONAUT is trading at ₹29,266, well below its 50 DMA (₹31,618) and 200 DMA (₹34,858), reflecting strong bearish pressure. RSI at 31.8 indicates oversold conditions, while MACD at -682 confirms heavy negative momentum. Bollinger Bands show price near the lower band, suggesting continued selling pressure. Volume is above average, showing strong participation in the downtrend.
📈 Momentum Signals: Short-term momentum is weak, with RSI oversold and MACD deeply negative. A rebound may occur if support holds, but trend remains bearish. Consolidation is possible before reversal attempts.
💹 Entry & Exit Zones:
- Optimal Entry: ₹29,200–₹29,400 (near support, oversold RSI)
- Stop-Loss: ₹29,000 (below strong support)
- Exit Zone: ₹31,500–₹31,700 (near 50 DMA resistance)
- Major Resistance: ₹34,800 (200 DMA)
📉 Trend Status: The stock is trending bearish, supported by oversold RSI but capped by strong moving average resistances.
Positive
- Strong ROCE (18.4%) and ROE (13.7%) highlight efficient capital use.
- Debt-to-equity ratio of 0.02 reflects near debt-free status.
- EPS of ₹571 reflects solid profitability.
- FII holdings increased (+0.46%), showing foreign investor confidence.
Limitation
- High P/E of 50.4 compared to industry average (28.0), indicating expensive valuation.
- PEG ratio of 3.23 suggests costly growth prospects.
- Dividend yield of 0.36% is modest.
- Price trading far below both 50 DMA and 200 DMA shows weak technical strength.
Company Negative News
- DII holdings decreased (-0.46%), showing reduced domestic institutional support.
- Quarterly PAT declined to ₹129 Cr. from ₹120 Cr., reflecting earnings pressure.
- Stock corrected sharply from its 52-week high of ₹41,600, reflecting selling pressure.
Company Positive News
- FII holdings increased (+0.46%), showing foreign investor interest.
- Quarterly PAT remains stable despite slight decline, indicating resilience.
Industry
- Automation and industrial technology industry benefits from rising demand in smart manufacturing and infrastructure modernization.
- Industry PE at 28.0 highlights relatively cheaper peers compared to HONAUT’s premium valuation.
Conclusion
⚖️ HONAUT is technically weak, trending bearish with oversold RSI and strong selling pressure. Traders may consider entry near ₹29,200–₹29,400 with strict stop-loss at ₹29,000, targeting ₹31,500–₹31,700 in the short term. Long-term investors should be cautious due to high valuations and modest efficiency metrics, waiting for sustained earnings growth before accumulation.
Would you like me to extend this into a peer benchmarking overlay (e.g., Siemens India, ABB India, Schneider Electric) so you can evaluate sector rotation opportunities alongside HONAUT?