IDEA - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.0

📉 IDEA is currently in a consolidation phase with neutral momentum and weak fundamentals. Entry zone: ₹8.30–₹8.73; exit zone: ₹9.50–₹10.00. Watch for MACD expansion and RSI crossing 55 to confirm short-term breakout potential.

📊 Technical Overview

• Price Action: Trading at ₹8.73, above both 50-DMA (₹8.36) and 200-DMA (₹8.17), indicating short-term support but lacking strength.
• RSI (49.2): Neutral zone, suggesting indecision and lack of momentum.
• MACD (0.28): Mild bullish crossover, but not yet supported by volume or price action.
• Bollinger Bands: Price near mid-band, confirming consolidation.
• Volume: Below 1-week average, showing reduced participation and weak conviction.
• Support Zones: ₹8.30 (S1), ₹7.80 (S2)
• Resistance Zones: ₹9.50 (R1), ₹10.00 (R2)

✅ Positive

• MACD crossover suggests early signs of technical recovery.
• Price trading above key moving averages indicates short-term support.
• FII and DII holdings increased slightly, showing cautious institutional interest.

⚠️ Limitation

• Book value is negative (₹-9.78), indicating financial stress.
• ROCE (-2.07%) and ROE unavailable, reflecting poor capital efficiency.
• EPS is negative (₹-3.60), and P/E ratio is undefined due to losses.
• Volume trends are weak, limiting breakout potential.

📉 Company Negative News

• Quarterly PAT remains negative at ₹-6,709 Cr., with only minor improvement from previous quarter.
• High debt levels and continued losses weigh on investor sentiment.

📈 Company Positive News

• Quarterly loss narrowed slightly, showing operational improvement.
• MACD and moving average alignment suggest potential for technical bounce.

🏢 Industry

• Telecom sector benefits from rising data consumption and digital infrastructure expansion.
• Industry P/E of 54.6 reflects high growth expectations across peers.

🧭 Conclusion

• IDEA is consolidating with neutral technical indicators and weak fundamentals.
• Entry zone: ₹8.30–₹8.73; exit zone: ₹9.50–₹10.00 for short-term swing trades.
• Long-term investors should remain cautious and monitor financial recovery before accumulating.