KEI - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.8

📊 Chart Patterns & Trend: KEI is trading above both its 50 DMA (4,094 ₹) and 200 DMA (3,920 ₹), reflecting strong bullish undertones. The price has corrected slightly from its 52-week high (4,575 ₹) but remains in an uptrend channel.

📈 Moving Averages: Current price (4,280 ₹) is comfortably above both DMAs, confirming strength. Support lies around 4,050–4,100 ₹.

📉 RSI: At 48.4, RSI is neutral, suggesting balanced momentum without overbought or oversold signals.

📉 MACD: Slightly negative at -0.88, reflecting mild consolidation but not a strong bearish crossover.

📊 Bollinger Bands: Price is near the mid-band, indicating consolidation within an overall bullish structure. A breakout above 4,400 ₹ could trigger fresh momentum.

🔊 Volume Trends: Current volume (1,39,100) is below average weekly volume (2,52,551), showing reduced participation. Stronger volumes are needed for a decisive breakout.

🎯 Momentum Signals: Neutral RSI with slightly negative MACD suggests consolidation. Price above DMAs keeps the bullish bias intact.

💹 Entry Zone: 4,050–4,150 ₹ (near DMA support).

💹 Exit Zone: 4,450–4,550 ₹ (resistance near 52-week high).

📌 Overall Trend: The stock is consolidating within a bullish structure, awaiting stronger volume for breakout continuation.

Positive

• EPS of 82.7 ₹ with strong ROE of 15.6% and ROCE of 21.3%.
• Debt-to-equity ratio of 0.04 indicates a nearly debt-free balance sheet.
• DII holdings increased by 1.08%, showing domestic institutional confidence.
• Quarterly PAT improved to 204 Cr. from 196 Cr., showing operational growth.

Limitation

• High P/E of 51.8 compared to industry average (20.0), suggesting premium valuation.
• PEG ratio of 2.28 highlights stretched valuation relative to growth.
• Dividend yield of 0.10% is very low for income-focused investors.
• Volume below average, limiting breakout potential.

Company Negative News

• FII holdings decreased by 0.77%, showing reduced foreign investor confidence.

Company Positive News

• DII holdings increased significantly, reflecting strong domestic support.
• Quarterly PAT growth of 31.5% indicates operational improvement.

Industry

• Industry PE at 20.0 is much lower than KEI’s P/E of 51.8, suggesting sector peers are more attractively priced.
• Cables and electrical equipment sector benefits from infrastructure growth and power demand expansion.

Conclusion

⚖️ KEI is consolidating above key moving averages with bullish undertones. Entry around 4,050–4,150 ₹ offers favorable risk-reward, while exits near 4,450–4,550 ₹ are optimal. Long-term investors should be cautious of high valuations, while short-term traders may benefit from momentum-driven moves if volumes strengthen.