HONAUT - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.3

📊 Chart Patterns: HONAUT is trading below both its 50 DMA (35,327 ₹) and 200 DMA (37,343 ₹), showing clear short-term weakness. Current price (33,750 ₹) is near support at 33,000–33,200 ₹, with resistance around 35,300–35,500 ₹. The broader range remains 31,000–35,500 ₹.

📉 Moving Averages: Price below both averages indicates bearish sentiment. Sustaining above 35,300 ₹ is needed to regain strength.

📉 RSI: At 33.5, RSI suggests the stock is oversold, indicating potential rebound opportunities.

📉 MACD: Strongly negative at -521, confirming bearish momentum and signaling caution for short-term traders.

📊 Bollinger Bands: Price is near the lower band, suggesting oversold conditions and possible short-term bounce.

📉 Volume Trends: Current volume (2,207) is below average weekly volume (2,889), showing weak participation and lack of strong buying conviction.

📌 Short-term Momentum Signals: Weak momentum with oversold RSI. A bounce is possible if price holds above 33,000 ₹. Breakout above 35,300–35,500 ₹ could trigger recovery toward 36,500 ₹.

🎯 Optimal Entry Zone: 33,000–33,200 ₹ (near support).

🎯 Optimal Exit Zone: 35,300–36,500 ₹ (near resistance).

📉 Trend Status: The stock is consolidating with a bearish bias, awaiting reversal signals.

Positive

• EPS of 584 ₹ highlights strong profitability.
• Low debt-to-equity ratio (0.02) ensures financial stability.
• FII holding increased by 0.24%, showing foreign investor confidence.
• Quarterly PAT remains stable (120 Cr. vs 125 Cr.), showing resilience.

Limitation

• High P/E (57.8) compared to industry PE (33.2) suggests overvaluation.
• PEG ratio of 3.70 indicates limited growth relative to valuation.
• Dividend yield of 0.31% is modest, limiting passive income appeal.
• Stock trading below both 50 DMA and 200 DMA shows weak technical strength.

Company Negative News

• DII holding decreased by -0.16%, reflecting reduced domestic institutional support.
• Slight decline in quarterly PAT (120 Cr. vs 125 Cr.) indicates earnings pressure.

Company Positive News

• FII holding increased, reflecting foreign investor confidence.
• Quarterly profit variation of 3.82% shows operational resilience despite earnings dip.

Industry

• Industry PE at 33.2 is lower than HONAUT’s PE (57.8), suggesting relative overvaluation.
• Automation and industrial technology sector outlook remains positive with demand for advanced solutions.

Conclusion

⚖️ HONAUT is fundamentally strong with high EPS and low debt, but technically weak in the short term. The stock is consolidating near support with bearish signals from RSI and MACD. Entry is favorable near 33,000–33,200 ₹ with cautious exit around 35,300–36,500 ₹. Long-term investors may hold for sector strength, while short-term traders should wait for confirmation above 35,300 ₹.