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KEC - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.7

Last Updated Time : 03 May 26, 11:24 am

Technical Rating: 3.7

Stock Code KEC Market Cap 14,926 Cr. Current Price 561 ₹ High / Low 947 ₹
Stock P/E 39.1 Book Value 194 ₹ Dividend Yield 0.98 % ROCE 14.6 %
ROE 7.00 % Face Value 2.00 ₹ DMA 50 578 ₹ DMA 200 688 ₹
Chg in FII Hold -1.91 % Chg in DII Hold 1.39 % PAT Qtr 78.7 Cr. PAT Prev Qtr 106 Cr.
RSI 47.8 MACD 2.95 Volume 6,08,536 Avg Vol 1Wk 8,45,776
Low price 501 ₹ High price 947 ₹ PEG Ratio -2.52 Debt to equity 0.90
52w Index 13.4 % Qtr Profit Var 8.00 % EPS 12.9 ₹ Industry PE 18.5

📈 Chart Patterns: KEC is consolidating with weak momentum, trading below both 50 DMA and 200 DMA, showing medium-term bearish bias.

📊 Moving Averages: Price below 50 DMA (578 ₹) and 200 DMA (688 ₹), confirming short and medium-term weakness.

📉 RSI: At 47.8, RSI suggests neutral-to-weak momentum, leaning towards bearish consolidation.

📈 MACD: Mildly positive at 2.95, signaling weak bullish attempts but lacking conviction.

📊 Bollinger Bands: Price near lower band, reflecting oversold conditions but no strong reversal yet.

📉 Volume Trends: Current volume (6.08L) below weekly average (8.45L), showing weak participation.

🔑 Short-Term Momentum Signals: Weak bullish attempts from MACD, but RSI and volume suggest consolidation with bearish bias.

🎯 Entry Zone: 550–565 ₹ near support levels.

🎯 Exit Zone: 580–600 ₹ near resistance cluster.

📌 Trend Status: Consolidating with bearish undertone.

Positive

  • ROCE at 14.6% indicates moderate efficiency.
  • DII holdings increased (+1.39%), showing domestic institutional support.
  • Dividend yield of 0.98% adds investor appeal.
  • EPS at 12.9 ₹ supports valuation stability.

Limitation

  • Price below both 50 DMA and 200 DMA, confirming weakness.
  • High debt-to-equity ratio (0.90).
  • Weak ROE (7%).
  • Volume below average, limiting breakout potential.

Company Negative News

  • Decline in FII holdings (-1.91%).
  • PAT dropped from 106 Cr. to 78.7 Cr.
  • PEG ratio of -2.52 indicates poor valuation relative to growth.

Company Positive News

  • DII inflows (+1.39%) show domestic confidence.
  • Quarterly profit variation positive at +8% sequentially.

Industry

  • Industry PE at 18.5, significantly lower than KEC’s P/E of 39.1, suggesting premium valuation.
  • Sector momentum modest with 52-week index at 13.4%.

Conclusion

KEC is consolidating with weak momentum, trading below key moving averages. Entry near 550–565 ₹ offers defensive positioning, while exits around 580–600 ₹ capture short-term resistance. Fundamentals show moderate efficiency but high debt and weak ROE, making cautious trading advisable with close monitoring of institutional flows.

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