INTELLECT - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.6

📊 Chart Patterns: INTELLECT is trading near its 50 DMA (1,056 ₹) and slightly above its 200 DMA (1,002 ₹), showing consolidation. Price action suggests sideways movement with support near 1,020 ₹ and resistance around 1,080–1,100 ₹.

📈 Moving Averages: Current price (1,053 ₹) is hovering around the 50 DMA and above the 200 DMA, indicating neutral momentum with mild bullish undertone.

📉 RSI: At 41.2, RSI is in the neutral-to-weak zone, leaning towards oversold conditions but not yet signaling reversal.

📉 MACD: Negative (-15.7) indicates bearish crossover, confirming short-term downside momentum.

📊 Bollinger Bands: Price is near the lower band, suggesting weakness but potential for rebound if support holds.

📊 Volume Trends: Current volume (95k) is significantly lower than 1-week average (2.11 lakh), showing reduced participation and lack of strong buying interest.

📌 Momentum Signals: Weak short-term momentum; rebound possible if price sustains above 1,020 ₹.

🎯 Entry Zone: 1,030–1,055 ₹ (near support and DMA levels).

🎯 Exit Zone: 1,080–1,100 ₹ (near resistance trendline).

🔎 Trend Status: Consolidating with mild bearish bias.

Positive

• Quarterly PAT growth of 186% (₹69.2 Cr vs ₹55.5 Cr).
• EPS of 17.9 ₹ supports valuation strength.
• DII holdings increased (+0.04%), showing domestic institutional support.
• Debt-to-equity ratio is very low (0.01), showing financial stability.
• Strong 52-week performance (+71.1%) reflects investor confidence.

Limitation

• High P/E ratio (58.9) compared to industry PE (26.4), suggesting overvaluation.
• PEG ratio is negative (-453), indicating poor growth-adjusted valuation.
• ROCE (14.2%) and ROE (10.5%) are modest compared to peers.
• Volume participation is weak, limiting breakout potential.

Company Negative News

• Decline in FII holding (-0.30%) shows reduced foreign investor confidence.
• Weak technical indicators (RSI, MACD) point to short-term bearishness.

Company Positive News

• Quarterly profits improved significantly (₹69.2 Cr vs ₹55.5 Cr).
• DII inflows (+0.04%) highlight domestic institutional confidence.
• Strong fundamentals with improving profitability and low debt.

Industry

• Industry PE at 26.4 is much lower than INTELLECT’s P/E (58.9), suggesting sector peers are more attractively valued.
• IT product and fintech solutions sector remains strong with digital adoption driving long-term demand.

Conclusion

⚖️ INTELLECT is consolidating near support levels with weak short-term momentum. Traders may consider entry around 1,030–1,055 ₹ with exit near 1,080–1,100 ₹. Long-term investors benefit from strong profit growth, debt-free balance sheet, and sector tailwinds, though high valuation, weak efficiency metrics, and reduced FII confidence remain concerns.