KAYNES - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.0
| Stock Code | KAYNES | Market Cap | 23,859 Cr. | Current Price | 3,560 ₹ | High / Low | 7,705 ₹ |
| Stock P/E | 111 | Book Value | 651 ₹ | Dividend Yield | 0.00 % | ROCE | 11.9 % |
| ROE | 7.97 % | Face Value | 10.0 ₹ | DMA 50 | 4,262 ₹ | DMA 200 | 5,315 ₹ |
| Chg in FII Hold | -1.84 % | Chg in DII Hold | -6.93 % | PAT Qtr | 62.9 Cr. | PAT Prev Qtr | 54.3 Cr. |
| RSI | 39.8 | MACD | -229 | Volume | 22,10,468 | Avg Vol 1Wk | 16,37,435 |
| Low price | 3,295 ₹ | High price | 7,705 ₹ | PEG Ratio | 1.58 | Debt to equity | 0.08 |
| 52w Index | 6.01 % | Qtr Profit Var | 0.53 % | EPS | 32.9 ₹ | Industry PE | 29.2 |
📊 Chart Patterns & Trend: The stock is trading at ₹3,560, well below its 50 DMA (₹4,262) and 200 DMA (₹5,315), reflecting strong bearish pressure. Price action is near its 52-week low of ₹3,295, suggesting oversold conditions and possible consolidation before reversal attempts.
📈 Moving Averages: Current price is significantly below both 50 DMA and 200 DMA, confirming downward momentum. A recovery above ₹4,262 would be the first bullish signal, while sustaining above ₹5,315 would confirm reversal.
📉 RSI: At 39.8, RSI is in the lower neutral zone, indicating weak momentum but not yet oversold. A move above 45–50 would signal strength.
📉 MACD: Deeply negative at -229, showing strong bearish momentum. Trend remains weak until MACD narrows toward zero.
📊 Bollinger Bands: Price is near the lower band, suggesting limited downside and potential mean reversion toward ₹3,800–₹4,000.
📊 Volume Trends: Current volume (22.1 Lakh) is higher than average weekly volume (16.3 Lakh), indicating active participation and possible accumulation at lower levels.
🎯 Entry Zone: ₹3,450–₹3,600 (near support and lower Bollinger band).
🎯 Exit Zone: ₹3,950–₹4,200 (near resistance and 50 DMA).
📌 Trend Status: Bearish with signs of consolidation. A reversal may occur if RSI rebounds and price sustains above ₹3,900–₹4,000.
Positive
- Low debt-to-equity ratio (0.08) ensures financial stability.
- EPS at ₹32.9 remains healthy compared to peers.
- Quarterly PAT improved to ₹62.9 Cr from ₹54.3 Cr, showing earnings growth.
Limitation
- Stock P/E (111) is significantly higher than industry PE (29.2), indicating extreme overvaluation.
- Price trading below both 50 DMA and 200 DMA confirms weak momentum.
- ROCE (11.9%) and ROE (7.97%) are relatively modest compared to sector leaders.
Company Negative News
- FII holdings decreased (-1.84%), showing reduced foreign investor confidence.
- DII holdings decreased (-6.93%), reflecting weaker domestic institutional support.
Company Positive News
- Quarterly PAT growth (+0.53%) indicates stability despite market weakness.
- EPS remains strong at ₹32.9, supporting valuation strength.
Industry
- Industry PE at 29.2 is much lower than the stock’s P/E, suggesting sector trades at more reasonable valuations.
- KAYNES trades at a premium but shows growth potential supported by earnings consistency.
Conclusion
⚖️ KAYNES is currently in a bearish phase, trading well below key moving averages with weak momentum indicators. However, volume activity and stable earnings provide potential for a short-term rebound. Entry near ₹3,450–₹3,600 offers favorable risk-reward, while exits around ₹3,950–₹4,200 align with resistance. Sustained buying and a move above ₹4,262–₹5,315 would confirm reversal toward bullish momentum.