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KEI - Technical Analysis with Chart Patterns & Indicators

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Rating: 4.9

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

Technical Rating: 4.9

Stock Code KEI Market Cap 52,044 Cr. Current Price 5,445 ₹ High / Low 5,455 ₹
Stock P/E 56.7 Book Value 697 ₹ Dividend Yield 0.08 % ROCE 20.1 %
ROE 14.8 % Face Value 2.00 ₹ DMA 50 4,863 ₹ DMA 200 4,397 ₹
Chg in FII Hold 1.78 % Chg in DII Hold -1.44 % PAT Qtr 284 Cr. PAT Prev Qtr 235 Cr.
RSI 72.1 MACD 157 Volume 3,51,191 Avg Vol 1Wk 3,66,985
Low price 3,500 ₹ High price 5,455 ₹ PEG Ratio 2.32 Debt to equity 0.04
52w Index 99.5 % Qtr Profit Var 25.5 % EPS 96.1 ₹ Industry PE 28.1

📈 Chart Patterns: KEI is in a strong uptrend, trading at its 52-week high (5,445 ₹ vs 5,455 ₹). Trendlines confirm bullish continuation with breakout momentum and higher highs.

📊 Moving Averages: Current price (5,445 ₹) is well above DMA 50 (4,863 ₹) and DMA 200 (4,397 ₹), showing clear bullish alignment across short and long-term trends.

📉 RSI: At 72.1, RSI indicates overbought conditions, suggesting strong momentum but risk of short-term correction.

📌 MACD: Strongly positive at 157, confirming powerful upward momentum and trend continuation.

📈 Bollinger Bands: Price near upper band, signaling strong buying pressure but caution for volatility.

🔎 Volume Trends: Current volume (3.51 lakh) is slightly below average (3.66 lakh), showing breakout strength but requiring stronger participation for sustained rally.

🎯 Momentum Signals: Bullish bias dominates with MACD strength and price at new highs. RSI overbought signals caution for near-term volatility.

📍 Entry Zone: 5,300–5,350 ₹ (support near breakout zone).

📍 Exit Zone: 5,500–5,600 ₹ (resistance beyond 52-week high).

📊 Trend Status: Strongly trending upward with bullish continuation; minor consolidation possible due to overbought RSI.

Positive

  • Quarterly PAT growth (+25.5%) from ₹235 Cr. to ₹284 Cr.
  • Strong ROCE (20.1%) and ROE (14.8%).
  • EPS at ₹96.1 with consistent growth.
  • FII holding increased (+1.78%), showing institutional confidence.

Limitation

  • High P/E (56.7) compared to industry average (28.1).
  • PEG ratio at 2.32 suggests growth priced in.
  • RSI overbought at 72.1, risk of short-term correction.
  • Volume slightly below average, limiting breakout conviction.

Company Negative News

  • DII holding reduced (-1.44%).
  • Premium valuation may cap upside potential.

Company Positive News

  • PAT improved significantly (+25.5%).
  • EPS growth supports long-term fundamentals.
  • FII inflows provide momentum support.

Industry

  • Industry PE at 28.1, much lower than KEI’s P/E, showing sector trades at discount.
  • Sector momentum strong with 52-week index at 99.5%.

Conclusion

⚖️ KEI is in a strong bullish trend, trading at its 52-week high with powerful momentum signals. Entry near 5,300–5,350 ₹ offers favorable positioning, while exits around 5,500–5,600 ₹ capture resistance levels. Fundamentals remain strong, but premium valuation and overbought RSI warrant disciplined risk management.

Would you like me to refine this into a short-term intraday breakout plan with tighter stop-loss levels, or expand it into a swing trade strategy with holding period guidance and trailing exits?

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