KANSAINER - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.5

📊 KANSAINER is consolidating near its moving averages with neutral momentum indicators and declining volume, suggesting indecision and limited short-term upside.

📊 Technical Analysis

• Trend: The stock is consolidating between its 50 DMA (₹248) and 200 DMA (₹251), showing lack of clear direction.
• Moving Averages: Price is hovering around key averages, indicating a neutral trend.
• RSI (47.6): In the neutral zone, suggesting balanced momentum with no strong buy/sell signal.
• MACD (1.26): Slightly positive, indicating early bullish crossover but weak momentum.
• Bollinger Bands: Price is near the middle band, confirming low volatility and range-bound movement

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• Volume: Current volume (2.29L) is lower than 1-week average (3.96L), showing reduced participation.

Sources

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🎯 Entry & Exit Zones

• Support Zone: ₹240 – ₹245 (recent base and psychological level)
• Resistance Zone: ₹255 – ₹265 (DMA levels and minor swing highs)
• Optimal Entry: ₹245 – ₹249 (if RSI rises above 50 and MACD strengthens)
• Exit Target: ₹260 – ₹270 (short-term recovery zone)

✅ Positive

• Strong ROCE (14.0%) and ROE (10.4%) indicate efficient capital deployment.
• EPS of ₹12.5 and PEG ratio of 1.64 suggest reasonable valuation for growth.
• Low debt-to-equity ratio (0.03) reflects financial stability.
• FII holding increased by 0.21%, showing foreign investor interest.

⚠️ Limitation

• Price is trading near key moving averages, indicating lack of momentum.
• MACD and RSI are neutral, offering no strong directional cues.
• Volume is declining, suggesting waning interest at current levels.

📉 Company Negative News

• Quarterly PAT declined from ₹123 Cr. to ₹231 Cr., a 4.25% drop.
• DII holding decreased by 0.17%, indicating cautious domestic sentiment.

📈 Company Positive News

• Stock has gained 43.4% over the past year, reflecting long-term investor interest.
• Stable technical indicators suggest resilience despite short-term weakness.

🎨 Industry

• Industry P/E is 42.4, higher than KANSAINER’s 30.8, suggesting relative undervaluation.
• Paints and coatings sector is cyclical and influenced by real estate demand and seasonal trends.

🧾 Conclusion

• KANSAINER is currently consolidating with neutral technical indicators and subdued momentum.
• Short-term traders should wait for MACD to turn decisively positive and RSI to cross 50 before entering.
• Long-term investors may consider accumulating near ₹245 with a target of ₹270, maintaining stop-loss below ₹240.