INDGN - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.9

📊 Chart Patterns: INDGN is trading near its 50 DMA (534 ₹) but below its 200 DMA (559 ₹), showing short-term stability but medium-term weakness. Price action is consolidating between 485 ₹ (support) and 682 ₹ (resistance).

📈 Moving Averages: Current price (533 ₹) is aligned with the 50 DMA but below the 200 DMA, suggesting consolidation with mild bearish undertone.

📉 RSI: At 56.5, RSI is neutral, indicating balanced momentum without overbought or oversold signals.

📈 MACD: Positive (0.50) indicates a mild bullish crossover, supporting short-term upward momentum.

📊 Bollinger Bands: Price is near the mid-band, suggesting consolidation with potential breakout if volume rises.

📊 Volume Trends: Current volume (2.60 lakh) is higher than 1-week average (1.84 lakh), showing increased participation and accumulation interest.

📌 Momentum Signals: Mild bullish momentum supported by MACD and volume; rebound possible if price sustains above 530 ₹.

🎯 Entry Zone: 525–535 ₹ (near support and 50 DMA).

🎯 Exit Zone: 570–585 ₹ (near resistance trendline).

🔎 Trend Status: Consolidating with mild bullish bias.

Positive

• Strong quarterly profit growth (₹59.9 Cr vs ₹45.1 Cr), up 33.7%.
• Healthy ROCE (16.6%) and ROE (12.6%).
• Low debt-to-equity ratio (0.03), indicating financial stability.
• FII holdings increased (+1.26%), showing foreign investor confidence.

Limitation

• High P/E ratio (61.2) compared to industry PE (46.0), suggesting overvaluation.
• PEG ratio of 5.88 indicates expensive valuation relative to growth.
• Dividend yield is low (0.37%), limiting income appeal.

Company Negative News

• Decline in DII holding (-0.25%) shows reduced domestic institutional support.
• Stock trading below 200 DMA (559 ₹), indicating medium-term weakness.

Company Positive News

• Strong quarterly profit growth and margin improvement.
• EPS at 8.71 ₹ reflects improving earnings visibility.
• FII inflows highlight growing international confidence in the company.

Industry

• Industry PE at 46.0 is lower than INDGN’s P/E (61.2), suggesting sector peers are more attractively valued.
• Sector outlook remains positive with steady demand and growth opportunities.

Conclusion

⚖️ INDGN is consolidating near support with mild bullish signals. Short-term traders may consider entry around 525–535 ₹ with exit near 570–585 ₹. Long-term investors should weigh strong profit growth and low debt against high valuation multiples and limited dividend yield.