KEC - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.6

📉 KEC is reversing from its highs with weak momentum indicators and declining volume, suggesting bearish sentiment and limited short-term upside.

📊 Technical Analysis

• Trend: The stock is reversing from its 52-week high of ₹1,313 and currently trading below both 50 DMA (₹849) and 200 DMA (₹850), indicating a bearish phase.
• Moving Averages: Price is below key averages, confirming downward pressure and lack of support from trendlines.
• RSI (33.2): Near oversold territory, suggesting weak momentum with potential for a technical bounce.
• MACD (-8.22): Negative crossover, reinforcing bearish momentum.
• Bollinger Bands: Price is near the lower band, indicating oversold conditions and increased volatility.
• Volume: Current volume (2.18L) is below 1-week average (2.84L), showing declining interest and reduced participation.

Sources

TSR

+2

🎯 Entry & Exit Zones

• Support Zone: ₹790 – ₹800 (recent base and psychological level)
• Resistance Zone: ₹845 – ₹860 (DMA levels and prior breakdown zone)
• Optimal Entry: ₹800 – ₹815 (if RSI stabilizes and MACD flattens)
• Exit Target: ₹850 – ₹875 (short-term recovery zone)

✅ Positive

• ROCE (14.6%) and ROE (7.00%) reflect moderate capital efficiency.
• EPS of ₹12.3 and dividend yield of 0.67% offer modest income potential.
• Debt-to-equity ratio of 0.65 indicates manageable leverage.

⚠️ Limitation

• Price is trading well below key moving averages, indicating sustained bearish pressure.
• MACD and RSI are weak, showing limited momentum.
• Volume is declining, suggesting lack of buying interest.

📉 Company Negative News

• Quarterly PAT dropped from ₹161 Cr. to ₹36.8 Cr., a sharp decline.
• FII and DII holdings decreased slightly, indicating cautious institutional sentiment.

📈 Company Positive News

• Quarterly profit variance of 14.6% YoY shows some annual growth.
• Price has rebounded 34% from its 52-week low of ₹605.

🏗️ Industry

• Industry P/E is 22.1, significantly lower than KEC’s 65.8, suggesting relative overvaluation.
• Engineering and infrastructure sector is cyclical and driven by government spending and project execution.

🧾 Conclusion

• KEC is currently reversing with weak technical indicators and bearish sentiment.
• Short-term traders should wait for RSI to rise above 45 and MACD to flatten before entering.
• Long-term investors may consider accumulating near ₹800 with a target of ₹875, maintaining stop-loss below ₹790.