INDGN - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.0
| Stock Code | INDGN | Market Cap | 11,557 Cr. | Current Price | 480 ₹ | High / Low | 640 ₹ |
| Stock P/E | 59.6 | Book Value | 81.6 ₹ | Dividend Yield | 0.42 % | ROCE | 16.6 % |
| ROE | 12.6 % | Face Value | 2.00 ₹ | DMA 50 | 509 ₹ | DMA 200 | 545 ₹ |
| Chg in FII Hold | 0.18 % | Chg in DII Hold | 1.11 % | PAT Qtr | 34.8 Cr. | PAT Prev Qtr | 59.9 Cr. |
| RSI | 38.4 | MACD | -12.8 | Volume | 2,00,251 | Avg Vol 1Wk | 3,79,259 |
| Low price | 456 ₹ | High price | 640 ₹ | PEG Ratio | 5.72 | Debt to equity | 0.03 |
| 52w Index | 13.4 % | Qtr Profit Var | -30.3 % | EPS | 8.08 ₹ | Industry PE | 36.1 |
📊 Chart Patterns & Trend: INDGN is in a bearish reversal phase after correcting from its highs. Price is trading below both the 50 DMA (509 ₹) and 200 DMA (545 ₹), indicating short-term weakness and medium-term resistance. Support is visible near 456–470 ₹.
📉 Moving Averages: Both 50 DMA and 200 DMA are acting as resistance. Sustained move above 510–520 ₹ would be required to confirm a reversal.
📉 RSI: At 38.4, RSI is weak, suggesting bearish momentum and limited buying strength.
📉 MACD: Negative (-12.8), showing bearish crossover and continued downside momentum.
📊 Bollinger Bands: Price is near the lower band, reflecting oversold conditions. A rebound toward 495–505 ₹ is possible if support holds.
📊 Volume Trends: Current volume (2.0 lakh) is lower than average weekly volume (3.8 lakh), showing reduced participation and lack of strong buying support.
🎯 Entry Zone: 465–480 ₹ (support zone).
🎯 Exit Zone: 510–525 ₹ (resistance zone).
🔑 Stop Loss: 455 ₹ (below recent support).
Positive
- ROCE at 16.6% and ROE at 12.6% show decent efficiency.
- Debt-to-equity ratio at 0.03 indicates virtually debt-free balance sheet.
- EPS at 8.08 ₹ supports valuation strength.
- Institutional inflows (FII +0.18%, DII +1.11%) show investor confidence.
Limitation
- Price trading below both 50 DMA and 200 DMA confirms bearish trend.
- PEG ratio of 5.72 indicates poor growth-adjusted valuation.
- Stock P/E at 59.6 is much higher than industry PE (36.1), suggesting overvaluation.
- Weak volume participation limits momentum strength.
Company Negative News
- Quarterly PAT declined from 59.9 Cr. to 34.8 Cr. (-30.3% variation).
- Stock has corrected sharply from 640 ₹ to 480 ₹, showing investor caution.
Company Positive News
- DII holdings increased (+1.11%), showing domestic institutional support.
- FII holdings also improved slightly (+0.18%).
- Debt-free balance sheet provides financial stability.
Industry
- Industry PE at 36.1 vs. stock PE at 59.6 highlights premium valuation.
- Sector supported by demand for specialty chemicals and industrial growth trends.
Conclusion
⚖️ INDGN is in a bearish reversal phase with weak signals (RSI low, MACD negative). Short-term bounce is possible from 465–480 ₹, but resistance near 510–525 ₹ limits upside. Medium-term outlook remains cautious due to earnings decline and stretched valuation, though debt-free status and institutional inflows provide stability. Risk management is crucial for traders considering entry.
Would you like me to extend this into a peer benchmarking overlay with other specialty chemical stocks (like Aarti Industries, Deepak Nitrite, and SRF) to highlight relative strength and sector rotation opportunities?