KAYNES - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.9

📊 Chart Patterns & Trend: KAYNES is trading well below both its 50 DMA (5,541 ₹) and 200 DMA (5,845 ₹), showing significant weakness. Price action suggests a reversal from highs and the stock is now in a corrective phase.

📈 Moving Averages: Current price (4,185 ₹) is far below both 50 DMA and 200 DMA, confirming bearish sentiment. Resistance lies around 5,541–5,845 ₹.

📉 RSI: At 29.0, RSI indicates oversold conditions, suggesting potential for a short-term bounce but overall weak momentum.

📉 MACD: Deeply negative at -576, confirming strong bearish momentum and lack of buying signals.

📊 Bollinger Bands: Price is near the lower band, signaling oversold territory and possible short-term recovery if volume improves.

📉 Volume Trends: Current volume (24,89,012) is below average weekly volume (34,62,575), showing reduced participation and weak conviction in recent moves.

🎯 Entry Zone: 3,900–4,100 ₹ (near support levels).

🎯 Exit Zone: 5,500–5,800 ₹ (resistance at DMA levels).

⚡ Momentum: Weak, oversold with potential short-term bounce but overall bearish bias.

Positive

• Low debt-to-equity ratio (0.08) ensures financial stability.
• DII holdings increased (+1.27%), showing domestic institutional support.
• EPS at 32.9 ₹ indicates consistent earnings power.
• Quarterly PAT improved slightly (62.9 Cr vs 54.3 Cr), showing resilience.

Limitation

• Stock trading far below both 50 DMA and 200 DMA, signaling strong weakness.
• RSI at 29 shows oversold but also weak momentum.
• MACD highly negative, confirming bearish trend continuation.
• High P/E ratio (130) compared to industry average (33.2), indicating overvaluation.
• Quarterly profit growth is minimal (0.53%), showing stagnation.

Company Negative News

• Sharp correction from 52-week high (7,825 ₹ to 4,185 ₹), reflecting investor caution.
• Weak technical signals with price below key moving averages.

Company Positive News

• Stable EPS and slight PAT improvement highlight operational resilience.
• DII stake increase shows confidence from domestic institutions.

Industry

• Industry PE at 33.2 is much lower than KAYNES’s PE (130), showing premium valuation.
• Electronics manufacturing sector has long-term growth potential driven by demand in semiconductors and automation.

Conclusion

⚖️ KAYNES is currently in a reversal phase with oversold signals. Short-term momentum is weak, with entry opportunities near 3,900–4,100 ₹ and resistance around 5,500–5,800 ₹. Fundamentally stable with low debt and institutional support, but technically cautious due to weak RSI, MACD, and moving averages. Best suited for long-term investors; traders should wait for reversal confirmation before entry.