KEI - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.2

📉 KEI is currently reversing with weak momentum indicators and trading below its 50 DMA, suggesting short-term bearish sentiment despite long-term strength.

📊 Technical Analysis

• Trend: The stock is reversing from its 52-week high of ₹4,706 and currently trading below its 50 DMA (₹4,077), though still above the 200 DMA (₹3,852).
• Moving Averages: Price is below 50 DMA but above 200 DMA, indicating medium-term weakness within a long-term uptrend.
• RSI (42.5): In the lower neutral zone, suggesting mild bearish momentum but not oversold.
• MACD (-10.6): Negative crossover, reinforcing short-term bearish momentum.
• Bollinger Bands: Price is near the lower band, indicating oversold conditions and potential for a technical bounce.
• Volume: Current volume (1.67L) is slightly below 1-week average (1.70L), showing reduced participation.

Sources

Investing.com India

+2

🎯 Entry & Exit Zones

• Support Zone: ₹3,850 – ₹3,950 (200 DMA and recent base)
• Resistance Zone: ₹4,070 – ₹4,150 (50 DMA and prior swing highs)
• Optimal Entry: ₹3,950 – ₹3,980 (if RSI stabilizes and MACD flattens)
• Exit Target: ₹4,150 – ₹4,250 (short-term recovery zone)

✅ Positive

• Strong ROCE (21.3%) and ROE (15.6%) indicate efficient capital deployment.
• EPS of ₹82.7 and low debt-to-equity ratio (0.04) reflect solid fundamentals.
• DII holding increased by 1.08%, showing domestic institutional confidence.
• Quarterly PAT improved from ₹196 Cr. to ₹204 Cr., showing earnings growth.

⚠️ Limitation

• Price is trading below 50 DMA and MACD is negative, indicating short-term weakness.
• RSI is below 45, showing limited momentum.
• High P/E (48.2) compared to industry average (23.5) suggests overvaluation.

📉 Company Negative News

• FII holding decreased by 0.77%, indicating reduced foreign investor interest.
• Stock has dropped from its high of ₹4,706 to ₹3,982, reflecting resistance near peak levels.

📈 Company Positive News

• Quarterly profit variance of 31.5% supports growth narrative.
• PEG ratio of 2.12 indicates reasonable valuation for growth.

🔌 Industry

• Industry P/E is 23.5, significantly lower than KEI’s, suggesting relative overvaluation.
• Electrical cable and infrastructure sector is cyclical and driven by industrial demand and government spending.

🧾 Conclusion

• KEI is currently reversing with weak short-term technical indicators but strong long-term fundamentals.
• Short-term traders should wait for RSI to rise above 50 and MACD to flatten before entering.
• Long-term investors may consider accumulating near ₹3,950 with a target of ₹4,250, maintaining stop-loss below ₹3,850.