JPPOWER - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.2

📊 Chart Patterns & Trend: JPPOWER is trading near its 200 DMA (18.0 ₹) and slightly below its 50 DMA (18.5 ₹), showing consolidation at support levels. The price has corrected from its 52-week high (27.7 ₹) and is stabilizing around the lower range.

📈 Moving Averages: Current price (18.0 ₹) is aligned with the 200 DMA but below the 50 DMA, indicating short-term weakness but long-term support.

📉 RSI: At 38.7, RSI is near oversold territory, suggesting potential for a short-term rebound.

📉 MACD: Slightly negative at -0.20, reflecting weak momentum and lack of strong bullish crossover.

📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible mean reversion.

📊 Volume Trends: Current volume (5,02,78,721) is significantly higher than average weekly volume (3,25,89,460), showing strong activity and possible accumulation at lower levels.

🎯 Momentum Signals: Weak short-term signals with bearish undertones, but oversold RSI and high volume suggest potential rebound.

💹 Entry Zone: 16.5–17.5 ₹ (near strong support levels).

💹 Exit Zone: 19.5–21.0 ₹ (resistance near DMA levels).

📌 Overall Trend: The stock is in a consolidation phase with bearish bias, but oversold indicators and strong volume hint at reversal attempts.

Positive

• EPS of 1.08 ₹ with reasonable P/E of 16.6 compared to industry average.
• Debt-to-equity ratio of 0.28 indicates low leverage.
• FII holdings increased slightly (+0.04%), showing foreign investor interest.
• Strong trading volume suggests accumulation interest.

Limitation

• Dividend yield is 0.00%, limiting income appeal.
• ROE (6.83%) and ROCE (10.2%) are modest, reflecting limited efficiency.
• Price trading below 50 DMA signals weak short-term momentum.

Company Negative News

• Quarterly PAT declined to 182 Cr. from 278 Cr., showing earnings pressure.
• DII holdings decreased by 0.08%, reflecting reduced domestic institutional confidence.

Company Positive News

• Strong trading volume indicates investor activity at lower levels.
• FII holdings increased slightly, showing foreign investor confidence.

Industry

• Industry PE at 26.7 is higher than JPPOWER’s P/E of 16.6, suggesting relative undervaluation.
• Power sector benefits from infrastructure growth and renewable energy expansion but remains cyclical.

Conclusion

⚖️ JPPOWER is consolidating near support levels with weak momentum but oversold indicators and strong volume suggest potential rebound. Entry around 16.5–17.5 ₹ offers favorable risk-reward, while exits near 19.5–21.0 ₹ are optimal. Long-term investors should monitor earnings consistency and sector dynamics before committing heavily.