INDGN - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.7

📉 INDGN is currently consolidating with weak short-term momentum, though long-term fundamentals and institutional interest remain supportive.

📊 Technical Analysis

• Trend Status: Consolidating — price is below both 50-DMA and 200-DMA, indicating lack of trend strength.
• Moving Averages: Price ₹536 is below 50-DMA (₹558) and 200-DMA (₹573), suggesting bearish pressure.
• RSI (42.4): Neutral to bearish zone, indicating weak momentum and limited buying strength.
• MACD (-5.20): Bearish crossover, confirming short-term weakness.
• Bollinger Bands: Price near lower band, suggesting support but no breakout signal.
• Volume: Current volume (4.91L) is above weekly average (3.08L), showing increased interest despite price weakness.

🎯 Entry & Exit Zones

• Support Levels: ₹520, ₹500, ₹485
• Resistance Levels: ₹558 (50-DMA), ₹573 (200-DMA), ₹600
• Optimal Entry: ₹520–₹530 (on pullback)
• Exit Target: ₹573–₹600 (resistance zone)

✅ Positive

• ROCE (16.6%) and ROE (12.6%) reflect solid capital efficiency.
• Debt-to-equity ratio of 0.03 indicates strong financial health.
• Quarterly PAT rose from ₹45.1 Cr to ₹59.9 Cr, showing earnings growth.
• FII holdings increased by 1.26%, signaling strong foreign investor confidence.

⚠️ Limitation

• MACD and RSI show bearish momentum, limiting short-term upside.
• Price trading below key moving averages, signaling technical weakness.
• PEG ratio of 5.91 suggests overvaluation relative to growth.

📉 Company Negative News

• DII holdings declined by 0.25%, reflecting cautious domestic sentiment.
• Stock is down 27% from its 52-week high of ₹735, indicating long-term underperformance.

📈 Company Positive News

• Quarterly profit variation of 33.7% shows strong operational improvement.
• EPS of ₹8.71 and consistent profitability support long-term valuation.

🏭 Industry

• Specialty chemicals and industrial gases sector remains resilient with demand from pharma and manufacturing.
• Industry P/E (45.4) is lower than INDGN’s (61.6), suggesting premium valuation.

🧾 Conclusion

• INDGN is consolidating with weak short-term momentum but strong fundamentals and institutional support.
• Entry near ₹520–₹530 could offer value with targets around ₹573–₹600.
• Investors should monitor RSI and MACD for signs of reversal and volume confirmation.