JYOTICNC - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 2.9

📉 JYOTICNC is reversing from its highs with weak momentum indicators and trading below key moving averages, suggesting bearish sentiment and limited short-term upside.

📊 Technical Analysis

• Trend: The stock is reversing from its high of ₹1,504 and currently trading below both 50 DMA (₹924) and 200 DMA (₹1,010), indicating a bearish phase.
• Moving Averages: Price is below key averages, confirming downward pressure and lack of support from trendlines.
• RSI (37.4): Near oversold territory, suggesting weak momentum but potential for a technical bounce.
• MACD (-11.9): Strongly negative, reinforcing bearish momentum.
• Bollinger Bands: Price is near the lower band, indicating oversold conditions and high volatility.
• Volume: Current volume (3.78L) is slightly above 1-week average (3.16L), showing mild accumulation interest.

🎯 Entry & Exit Zones

• Support Zone: ₹850 – ₹870 (recent base and psychological level)
• Resistance Zone: ₹920 – ₹940 (50 DMA and prior breakdown zone)
• Optimal Entry: ₹860 – ₹880 (if RSI stabilizes and MACD flattens)
• Exit Target: ₹930 – ₹950 (short-term recovery zone)

✅ Positive

• Strong ROCE (21.5%) and ROE (16.6%) indicate efficient capital use.
• PEG ratio of 0.38 suggests undervaluation relative to growth.
• Low debt-to-equity ratio (0.10) reflects financial stability.
• FII and DII holdings increased by 2.45% and 2.57% respectively, showing institutional confidence.

⚠️ Limitation

• Price is trading well below key moving averages, indicating sustained bearish pressure.
• RSI and MACD are weak, showing limited momentum.
• High P/E ratio (58.6) compared to industry average (35.8) suggests overvaluation.

📉 Company Negative News

• Quarterly PAT dropped from ₹122 Cr. to ₹72.1 Cr., a 51.2% decline.
• Stock has fallen significantly from its high of ₹1,504 to ₹878.

📈 Company Positive News

• EPS of ₹15.0 and strong ROCE/ROE metrics support long-term value.
• Institutional buying indicates confidence despite short-term weakness.

⚙️ Industry

• Industry P/E is 35.8, lower than JYOTICNC’s, suggesting relative overvaluation.
• Precision engineering and CNC manufacturing sector is cyclical and driven by industrial demand and automation trends.

🧾 Conclusion

• JYOTICNC is currently reversing with weak technical indicators and bearish sentiment.
• Short-term traders should wait for RSI to rise above 45 and MACD to flatten before entering.
• Long-term investors may consider accumulating near ₹870 with a target of ₹950, maintaining stop-loss below ₹850.