KEC - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.3

📊 Chart Patterns & Trend: KEC is trading below both its 50 DMA (751 ₹) and 200 DMA (814 ₹), showing weakness. Price action suggests a reversal from highs and the stock is currently in a corrective phase.

📈 Moving Averages: Current price (712 ₹) is below both 50 DMA and 200 DMA, confirming bearish sentiment. Resistance lies around 751–814 ₹.

📉 RSI: At 41.3, RSI is in neutral-to-weak territory, suggesting limited momentum and potential downside before oversold levels.

📉 MACD: Negative at -18.1, confirming bearish momentum and lack of strong buying signals.

📊 Bollinger Bands: Price is near the lower band, signaling oversold conditions but also weak buying interest.

📉 Volume Trends: Current volume (3,61,633) is significantly below average weekly volume (16,08,167), showing lack of participation and weak conviction in recent moves.

🎯 Entry Zone: 680–700 ₹ (near support levels).

🎯 Exit Zone: 751–814 ₹ (resistance at DMA levels).

⚡ Momentum: Weak, with consolidation and bearish bias.

Positive

• Quarterly PAT surged (106 Cr vs 36.8 Cr), showing strong operational recovery.
• EPS at 14.1 ₹ indicates consistent earnings power.
• ROCE at 14.6% reflects decent capital efficiency.
• Dividend yield of 0.79% provides shareholder returns.

Limitation

• Stock trading below both 50 DMA and 200 DMA, signaling weakness.
• RSI at 41.3 shows weak momentum, not yet oversold.
• MACD negative, confirming bearish trend continuation.
• High P/E ratio (50.5) compared to industry average (18.8), indicating overvaluation.
• Debt-to-equity ratio at 0.90 is relatively high, increasing financial risk.

Company Negative News

• FII (-0.10%) and DII (-0.01%) holdings decreased, showing reduced institutional confidence.
• Stock struggling to hold above key moving averages, reflecting technical weakness.

Company Positive News

• Quarterly PAT growth of 81.8% highlights strong operational performance.
• EPS stability supports long-term investor confidence.

Industry

• Industry PE at 18.8 is much lower than KEC’s PE (50.5), showing premium valuation.
• Infrastructure and engineering sector demand remains cyclical but supported by government projects and capex growth.

Conclusion

⚖️ KEC is currently in a reversal phase with bearish bias. Short-term momentum is weak, with entry opportunities near 680–700 ₹ and resistance around 751–814 ₹. Fundamentally supported by strong PAT growth, 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.