IGIL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.7

📊 Chart Patterns: IGIL is trading below both its 50 DMA (334 ₹) and 200 DMA (369 ₹), showing weakness. Price action suggests consolidation with support near 320 ₹ and resistance around 340–350 ₹.

📈 Moving Averages: Current price (326 ₹) is below both 50 DMA and 200 DMA, confirming short-term and medium-term bearish sentiment.

📉 RSI: At 39.9, RSI is close to oversold territory, suggesting potential for rebound if support holds.

📉 MACD: Negative (-4.95) indicates bearish crossover, confirming downside momentum.

📊 Bollinger Bands: Price is near the lower band, signaling weakness but potential for short-term bounce.

📊 Volume Trends: Current volume (4.08 lakh) is higher than 1-week average (2.80 lakh), showing increased participation and volatility.

📌 Momentum Signals: Weak short-term momentum; rebound possible if price sustains above 320 ₹.

🎯 Entry Zone: 320–330 ₹ (near support).

🎯 Exit Zone: 340–350 ₹ (near resistance trendline).

🔎 Trend Status: Consolidating with bearish bias.

Positive

• Strong ROCE (42.6%) and ROE (32.5%) highlight excellent efficiency.
• EPS of 12.2 ₹ supports valuation strength.
• PEG ratio of 0.76 indicates reasonable valuation relative to growth.
• Debt-to-equity ratio is very low (0.01), showing financial stability.
• Quarterly PAT growth of 29% (₹139 Cr vs ₹137 Cr).

Limitation

• Stock trading below both 50 DMA and 200 DMA, showing technical weakness.
• Dividend yield is modest at 0.76%, limiting income appeal.
• High volatility with wide 52-week range (282–642 ₹).

Company Negative News

• Decline in DII holding (-0.29%) shows reduced domestic institutional confidence.
• Weak technical indicators (RSI, MACD) point to short-term bearishness.

Company Positive News

• Quarterly profits improved (₹139 Cr vs ₹137 Cr).
• FII holdings increased (+0.37%), showing foreign investor support.
• Strong fundamentals with high efficiency ratios and low debt.

Industry

• Industry PE at 21.3 is lower than IGIL’s P/E (26.7), suggesting premium valuation.
• Sector outlook remains positive with strong demand and growth opportunities.

Conclusion

⚖️ IGIL is consolidating near support levels with weak short-term momentum. Traders may consider entry around 320–330 ₹ with exit near 340–350 ₹. Long-term investors benefit from strong fundamentals, low debt, and efficiency, though high volatility and reduced DII confidence remain concerns.