IKS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.0
| Stock Code | IKS | Market Cap | 23,240 Cr. | Current Price | 1,350 ₹ | High / Low | 1,876 ₹ |
| Stock P/E | 46.7 | Book Value | 86.2 ₹ | Dividend Yield | 0.00 % | ROCE | 35.0 % |
| ROE | 32.3 % | Face Value | 1.00 ₹ | DMA 50 | 1,509 ₹ | DMA 200 | 1,599 ₹ |
| Chg in FII Hold | 0.54 % | Chg in DII Hold | 1.17 % | PAT Qtr | 146 Cr. | PAT Prev Qtr | 138 Cr. |
| RSI | 37.4 | MACD | -70.7 | Volume | 2,46,814 | Avg Vol 1Wk | 2,34,173 |
| Low price | 1,226 ₹ | High price | 1,876 ₹ | PEG Ratio | 2.69 | Debt to equity | 0.07 |
| 52w Index | 19.0 % | Qtr Profit Var | 76.7 % | EPS | 29.0 ₹ | Industry PE | 23.1 |
📉 Chart & Trend: IKS is trading below both its 50 DMA (₹1,509) and 200 DMA (₹1,599), with the current price at ₹1,350. This indicates a bearish undertone and lack of recovery momentum.
📊 RSI: At 37.4, RSI is weak and near oversold territory, suggesting limited upside potential but possible short-term bounce.
📉 MACD: Negative at -70.7, confirming bearish momentum and absence of reversal signals.
📈 Bollinger Bands: Price is near the lower band, reflecting weakness and potential downside risk if support breaks.
📊 Volume: Current volume (2.46 Lakh) is slightly above average weekly volume (2.34 Lakh), showing active participation but tilted towards selling pressure.
📍 Support & Resistance:
- Strong support: ₹1,226
- Immediate resistance: ₹1,509 (50 DMA)
- Major resistance: ₹1,599 (200 DMA)
Optimal entry zone: ₹1,300–₹1,350 (near support).
Exit zone: ₹1,500–₹1,550 (resistance cluster).
🔎 Trend Status: The stock is consolidating with bearish bias. A reversal requires sustained close above ₹1,509.
Positive
- ROCE (35.0%) and ROE (32.3%) indicate strong capital efficiency.
- Low debt-to-equity (0.07) ensures financial stability.
- Quarterly PAT growth (₹146 Cr vs ₹138 Cr) shows earnings momentum.
- EPS at ₹29.0 supports earnings visibility.
Limitation
- Trading below both 50 DMA and 200 DMA signals weakness.
- RSI and MACD confirm bearish momentum.
- P/E of 46.7 compared to industry PE of 23.1 indicates overvaluation.
- PEG ratio of 2.69 suggests valuation is not cheap relative to growth.
Company Negative News
- Stock has corrected sharply from its 52-week high of ₹1,876.
- High valuation multiples may limit upside in near term.
Company Positive News
- FII holding increased by 0.54% and DII holding by 1.17%, showing institutional confidence.
- Quarterly profit variation of 76.7% indicates strong growth momentum.
Industry
- Industry PE at 23.1 vs IKS’s PE of 46.7 shows relative premium valuation.
- Sector outlook remains positive with strong demand drivers and efficiency gains.
Conclusion
⚖️ IKS is consolidating with bearish bias near support. Short-term traders may consider entry around ₹1,300–₹1,350 with exits near ₹1,500–₹1,550. Long-term investors should be cautious given high valuation, waiting for confirmation above ₹1,509 before adding positions.
Would you like me to extend this into a sector basket overlay (IKS vs peers like KPIT, L&T Tech, Tata Elxsi) so you can benchmark IKS’s setup against competitors for stronger confirmation signals?