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KAYNES - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.8

Last Updated Time : 28 May 26, 09:00 pm

Technical Rating: 3.8

Stock Code KAYNES Market Cap 21,654 Cr. Current Price 3,230 ₹ High / Low 7,705 ₹
Stock P/E 84.6 Book Value 671 ₹ Dividend Yield 0.00 % ROCE 10.6 %
ROE 7.17 % Face Value 10.0 ₹ DMA 50 3,773 ₹ DMA 200 4,502 ₹
Chg in FII Hold -1.59 % Chg in DII Hold -1.60 % PAT Qtr 71.0 Cr. PAT Prev Qtr 67.6 Cr.
RSI 37.7 MACD -219 Volume 12,96,608 Avg Vol 1Wk 21,32,877
Low price 2,995 ₹ High price 7,705 ₹ PEG Ratio 2.16 Debt to equity 0.07
52w Index 4.98 % Qtr Profit Var 17.5 % EPS 37.9 ₹ Industry PE 31.8

📈 Chart Patterns: KAYNES is in a steep downtrend, falling from its 7,705 ₹ high to 3,230 ₹, close to its recent low of 2,995 ₹. Trendlines confirm bearish continuation with failed recovery attempts.

📊 Moving Averages: Current price (3,230 ₹) is below DMA 50 (3,773 ₹) and DMA 200 (4,502 ₹), confirming strong bearish momentum.

📉 RSI: At 37.7, RSI indicates oversold conditions, suggesting potential for a short-term rebound.

📌 MACD: Deeply negative at -219, confirming strong bearish momentum.

📈 Bollinger Bands: Price near lower band, highlighting oversold territory and possible bounce attempts.

🔎 Volume Trends: Current volume (12.9 lakh) is below average (21.3 lakh), showing weak participation and lack of conviction.

🎯 Momentum Signals: Bearish bias dominates, though oversold RSI and lower Bollinger Band hint at short-term rebound potential.

📍 Entry Zone: 3,000–3,150 ₹ (support near 52-week low).

📍 Exit Zone: 3,600–3,700 ₹ (resistance near DMA 50).

📊 Trend Status: Reversing into bearish consolidation; recovery only if price sustains above 3,773 ₹ (DMA 50).

Positive

  • Quarterly PAT growth (+17.5%) from ₹67.6 Cr. to ₹71 Cr.
  • EPS at ₹37.9 supports earnings strength.
  • Low debt-to-equity (0.07) ensures financial stability.

Limitation

  • Price below both DMA 50 and DMA 200.
  • Weak volume participation undermines breakout potential.
  • High P/E (84.6) compared to industry average (31.8).
  • PEG ratio of 2.16 indicates valuation stretch.

Company Negative News

  • FII holding reduced (-1.59%).
  • DII holding declined (-1.60%).
  • Stock underperforming sector with 52w Index at just 4.98%.

Company Positive News

  • PAT improved (+17.5%).
  • EPS remains strong at ₹37.9.
  • Debt-free balance sheet supports fundamentals.

Industry

  • Industry PE at 31.8, much lower than KAYNES’s P/E (84.6), showing premium valuation.
  • Sector momentum weak with 52-week index at 4.98%.

Conclusion

⚖️ KAYNES is consolidating near lows with bearish signals. Entry near 3,000–3,150 ₹ offers defensive positioning, while exits around 3,600–3,700 ₹ capture resistance levels. Strong fundamentals provide support, but weak momentum, premium valuation, and declining institutional holdings warrant cautious trading until price sustains above DMA 50.

I can refine this into a short-term rebound setup with stop-loss levels, or expand it into a swing trade plan with holding period guidance.

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