KAYNES - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.1

📉 KAYNES is reversing from its highs with weakening momentum indicators and declining volume, suggesting short-term caution despite long-term strength.

📊 Technical Analysis

• Trend: The stock is reversing from its 52-week high of ₹7,825 and currently trading below its 50 DMA (₹6,817), though still above the 200 DMA (₹6,048), indicating medium-term weakness within a long-term uptrend

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• Moving Averages: Price is below 50 DMA and above 200 DMA, suggesting consolidation with bearish bias.
• RSI (41.8): In the lower neutral zone, indicating mild bearish momentum but not oversold

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• MACD (-64.0): Strongly negative, reinforcing short-term bearish sentiment

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• Bollinger Bands: Price is near the lower band, suggesting oversold conditions and potential for a technical bounce

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• Volume: Current volume (2.14L) is significantly below 1-week average (4.77L), indicating reduced participation and waning interest

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🎯 Entry & Exit Zones

• Support Zone: ₹6,400 – ₹6,500 (recent base and psychological support)
• Resistance Zone: ₹6,800 – ₹7,000 (50 DMA and prior swing highs)
• Optimal Entry: ₹6,450 – ₹6,550 (if RSI stabilizes and MACD flattens)
• Exit Target: ₹6,950 – ₹7,100 (short-term recovery zone)

✅ Positive

• ROCE (11.9%) and ROE (7.97%) reflect moderate capital efficiency.
• EPS of ₹33.3 and PEG ratio of 2.95 suggest growth potential despite high valuation.
• DII holding increased by 1.27%, showing domestic institutional confidence.
• Stock has gained 70.6% over the past year, indicating long-term investor interest.

⚠️ Limitation

• Price is trading below 50 DMA and MACD is deeply negative, indicating short-term weakness.
• RSI is below 45, showing limited momentum.
• Volume is declining, suggesting lack of strong buying interest.

📉 Company Negative News

• Quarterly PAT declined from ₹60.4 Cr. to ₹54.3 Cr., a 11.9% drop.
• FII holding remained unchanged, indicating cautious foreign sentiment.

📈 Company Positive News

• Strong EPS and PEG ratio support long-term valuation.
• Institutional accumulation from DIIs suggests confidence in future performance.

🔌 Industry

• Industry P/E is 35.8, significantly lower than KAYNES’s 207, suggesting relative overvaluation.
• Electronics manufacturing sector is cyclical and driven by global demand and innovation cycles.

🧾 Conclusion

• KAYNES is currently reversing with weak technical indicators and bearish sentiment.
• Short-term traders should wait for RSI to rise above 50 and MACD to flatten before entering.
• Long-term investors may consider accumulating near ₹6,500 with a target of ₹7,100, maintaining stop-loss below ₹6,400.

Sources

tick.dailybulls.in

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