KIMS - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.0

📊 Chart Patterns & Trend: KIMS is trading below both its 50 DMA (689 ₹) and 200 DMA (674 ₹), showing weakness. Price action suggests a reversal from highs and the stock is currently in a corrective phase.

📈 Moving Averages: Current price (637 ₹) is below both 50 DMA and 200 DMA, confirming bearish sentiment. Resistance lies around 674–689 ₹.

📉 RSI: At 30.8, RSI indicates oversold conditions, suggesting potential for a short-term bounce but overall weak momentum.

📉 MACD: Negative at -12.7, confirming bearish momentum and lack of strong buying signals.

📊 Bollinger Bands: Price is near the lower band, signaling oversold territory and possible short-term recovery if volume improves.

📉 Volume Trends: Current volume (3,85,441) is below average weekly volume (4,98,162), showing reduced participation and weak conviction in recent moves.

🎯 Entry Zone: 610–630 ₹ (near support levels).

🎯 Exit Zone: 674–689 ₹ (resistance at DMA levels).

⚡ Momentum: Weak, oversold with potential short-term bounce but overall bearish bias.

Positive

• ROCE (16.0%) and ROE (14.0%) indicate decent efficiency and profitability.
• DII holdings increased (+0.47%), showing domestic institutional support.
• EPS at 7.30 ₹ provides earnings visibility.
• Low debt-to-equity ratio (0.46) compared to sector peers ensures moderate financial stability.

Limitation

• Stock trading below both 50 DMA and 200 DMA, signaling weakness.
• RSI at 30.8 shows oversold but also weak momentum.
• MACD negative, confirming bearish trend continuation.
• High P/E ratio (89.8) compared to industry average (51.8), indicating overvaluation.
• PEG ratio at 299 highlights poor growth-adjusted valuation.

Company Negative News

• Quarterly PAT declined (-11.8%), showing earnings pressure.
• FII holdings decreased (-0.51%), reflecting reduced foreign investor confidence.
• Stock corrected sharply from 52-week high (798 ₹ to 637 ₹).

Company Positive News

• EPS stability and moderate ROCE/ROE support long-term fundamentals.
• DII stake increase (+0.47%) shows confidence from domestic institutions.

Industry

• Industry PE at 51.8 is lower than KIMS’s PE (89.8), showing premium valuation.
• Healthcare sector demand remains strong, supported by rising medical infrastructure and patient volumes.

Conclusion

⚖️ KIMS is currently in a reversal phase with oversold signals. Short-term momentum is weak, with entry opportunities near 610–630 ₹ and resistance around 674–689 ₹. Fundamentally supported by ROCE/ROE and institutional backing, 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.