INOXINDIA - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.7

📊 Chart Patterns: INOX India is trading below both its 50 DMA (1,167 ₹) and 200 DMA (1,154 ₹), showing short-term weakness. Current price (1,132 ₹) is near support at 1,120–1,130 ₹, with resistance around 1,165–1,180 ₹. Broader range remains 1,120–1,180 ₹.

📉 Moving Averages: Price below both averages indicates bearish sentiment in the short term.

📉 RSI: At 39.0, RSI suggests the stock is oversold, indicating potential rebound opportunities.

📉 MACD: Negative at -14.8, confirming bearish momentum and signaling caution for traders.

📊 Bollinger Bands: Price is near the lower band, suggesting oversold conditions and possible short-term bounce.

📈 Volume Trends: Current volume (55,196) is higher than average weekly volume (40,022), showing increased participation despite weakness.

📌 Short-term Momentum Signals: Weak momentum with oversold RSI. A bounce is possible if price holds above 1,120 ₹. Breakout above 1,165–1,180 ₹ could trigger recovery toward 1,220 ₹.

🎯 Optimal Entry Zone: 1,120–1,130 ₹ (near support).

🎯 Optimal Exit Zone: 1,165–1,220 ₹ (near resistance).

📉 Trend Status: The stock is consolidating with a bearish bias, awaiting reversal signals.

Positive

• Strong ROCE (37.0%) and ROE (27.9%) reflect excellent operational efficiency.
• EPS of 26.6 ₹ supports valuation strength.
• Low debt-to-equity ratio (0.10) ensures financial stability.
• FII holding increased slightly by 0.18% and DII holding by 0.02%, showing investor confidence.

Limitation

• Stock trading below both 50 DMA and 200 DMA shows weak technical strength.
• High P/E (43.8) compared to industry PE (28.9) suggests overvaluation.
• PEG ratio of 2.18 indicates limited growth relative to valuation.
• Dividend yield of 0.18% is very low, limiting passive income appeal.

Company Negative News

• Slight decline in quarterly PAT (57.1 Cr. vs 60.4 Cr.) indicates earnings pressure.

Company Positive News

• Quarterly profit variation of 15.5% highlights operational resilience.
• FII and DII holdings increased slightly, reflecting investor confidence.

Industry

• Industry PE at 28.9 is lower than INOX India’s PE (43.8), suggesting relative overvaluation.
• Industrial gases and cryogenic equipment sector outlook remains positive with demand from energy and infrastructure projects.

Conclusion

⚖️ INOX India shows strong fundamentals with high ROCE/ROE and low debt, but technically the stock is consolidating below key averages with bearish signals from RSI and MACD. Entry is favorable near 1,120–1,130 ₹ with cautious exit around 1,165–1,220 ₹. Long-term investors may hold for sector strength, while short-term traders should wait for confirmation above 1,165 ₹.