IOC - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.0

📊 Chart Patterns: IOC is trading near its 50 DMA (162 ₹) and comfortably above its 200 DMA (151 ₹), showing medium-term strength. Price action is consolidating between 160 ₹ (support) and 174 ₹ (resistance), with potential for breakout.

📈 Moving Averages: Current price (163 ₹) is slightly above both 50 DMA and 200 DMA, suggesting stability and mild bullish undertone.

📉 RSI: At 44.6, RSI is neutral-to-weak, leaning towards oversold territory but not yet signaling reversal.

📈 MACD: Positive (0.42) indicates mild bullish crossover, supporting short-term upward momentum.

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

📊 Volume Trends: Current volume (1.07 Cr) is lower than 1-week average (2.30 Cr), showing reduced participation and lack of strong momentum.

📌 Momentum Signals: Mild bullish momentum; rebound possible if price sustains above 160 ₹ support.

🎯 Entry Zone: 160–164 ₹ (near support and DMA levels).

🎯 Exit Zone: 172–175 ₹ (near resistance and recent highs).

🔎 Trend Status: Consolidating with bullish bias.

Positive

• Strong quarterly PAT growth (₹7,610 Cr vs ₹5,689 Cr), up 1,016%.
• Dividend yield of 3.11% adds investor appeal.
• EPS of 16.6 ₹ supports valuation.
• Stock trading above 200 DMA, confirming medium-term strength.

Limitation

• ROCE (7.26%) and ROE (6.41%) are relatively weak compared to peers.
• Debt-to-equity ratio of 0.74 indicates moderate leverage.
• PEG ratio is negative (-0.45), suggesting limited growth visibility.
• Volume participation is declining, limiting breakout potential.

Company Negative News

• Weak efficiency metrics (ROCE, ROE) despite strong profit growth.
• Reduced trading volume compared to average, showing lack of strong buying interest.

Company Positive News

• Quarterly profits surged significantly (₹7,610 Cr vs ₹5,689 Cr).
• FII holdings increased (+0.21%) and DII holdings increased (+0.13%), showing institutional support.
• Stock delivered 81.3% returns over 52 weeks, reflecting strong investor confidence.

Industry

• Industry PE at 11.3 is slightly higher than IOC’s P/E (10.0), suggesting relative undervaluation.
• Oil & gas sector remains cyclical but supported by strong demand and government backing.

Conclusion

⚖️ IOC is consolidating near support levels with mild bullish signals. Traders may consider entry around 160–164 ₹ with exit near 172–175 ₹. Long-term investors benefit from strong profit growth, dividend yield, and institutional support, though weak efficiency metrics and moderate leverage remain concerns.