IEX - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.5

📉 IEX is consolidating with weak short-term momentum and bearish technical signals, though long-term fundamentals remain solid.

📊 Technical Analysis

• Trend Status: Consolidating — price is below both 50-DMA and 200-DMA, indicating lack of trend strength.
• Moving Averages: Price ₹140 is below 50-DMA (₹145) and 200-DMA (₹163), suggesting bearish pressure.
• RSI (44.0): Neutral to bearish zone, indicating weak momentum and limited buying interest.
• MACD (0.46): Slightly positive, but lacks strength to confirm bullish reversal.
• Bollinger Bands: Price near lower band, suggesting support but no breakout signal.
• Volume: Current volume (1.54 Cr) is above weekly average (1.29 Cr), showing increased interest despite price weakness.

🎯 Entry & Exit Zones

• Support Levels: ₹135, ₹130 (52-week low)
• Resistance Levels: ₹145 (50-DMA), ₹163 (200-DMA), ₹175
• Optimal Entry: ₹135–₹140 (on pullback)
• Exit Target: ₹163–₹175 (resistance zone)

✅ Positive

• ROCE (53.6%) and ROE (40.5%) reflect excellent capital efficiency.
• Zero debt-to-equity ratio indicates strong financial health.
• Dividend yield of 2.16% adds passive income appeal.
• Quarterly PAT increased from ₹113 Cr to ₹122 Cr, showing earnings growth.

⚠️ Limitation

• Price trading below key moving averages, signaling technical weakness.
• RSI and MACD show weak momentum, limiting short-term upside.
• PEG ratio of 2.28 suggests overvaluation relative to growth.

📉 Company Negative News

• FII holdings declined by 5.33%, indicating reduced foreign investor confidence.
• Stock is down 35% from its 52-week high of ₹215, reflecting long-term underperformance.

📈 Company Positive News

• DII holdings increased by 2.31%, showing growing domestic institutional interest.
• Quarterly profit variation of 14.6% shows operational improvement.

🏭 Industry

• Power exchange and energy trading sector remains vital with increasing demand for efficient energy markets.
• Industry P/E (63.6) is significantly higher than IEX’s (27.8), suggesting relative undervaluation.

🧾 Conclusion

• IEX is consolidating with weak technical momentum but strong financial fundamentals.
• Entry near ₹135–₹140 could offer value with targets around ₹163–₹175.
• Investors should monitor RSI and MACD for signs of reversal and volume confirmation.