KNRCON - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.9

📊 Chart Patterns & Trend: KNRCON is trading well below both its 50 DMA (167 ₹) and 200 DMA (207 ₹), reflecting strong bearish momentum. The price has corrected sharply from its 52-week high (357 ₹) and is hovering near its recent low (141 ₹), suggesting weakness with attempts to stabilize.

📈 Moving Averages: Current price (146 ₹) is significantly below both DMAs, confirming bearish undertones. A recovery above 165–170 ₹ would be needed to regain momentum.

📉 RSI: At 26.2, RSI is in oversold territory, indicating potential for a short-term rebound.

📉 MACD: Negative at -8.04, confirming bearish sentiment and lack of strong upward crossover.

📊 Bollinger Bands: Price is near the lower band, reflecting oversold conditions and possible mean reversion.

🔊 Volume Trends: Current volume (5,61,806) is below average weekly volume (8,65,355), showing reduced participation and cautious sentiment.

🎯 Momentum Signals: Weak short-term signals with bearish bias. Oversold RSI and Bollinger positioning suggest potential rebound attempts if buying interest emerges.

💹 Entry Zone: 140–150 ₹ (near strong support levels).

💹 Exit Zone: 165–180 ₹ (resistance near 50 DMA).

📌 Overall Trend: The stock is in a consolidation phase with bearish undertones, awaiting stronger volume for reversal.

Positive

• EPS of 12.0 ₹ with strong ROE of 20.5% and ROCE of 27.4%.
• PEG ratio of 0.47 suggests reasonable valuation relative to growth.
• Debt-to-equity ratio of 0.02 indicates a nearly debt-free balance sheet.
• FII holdings increased by 0.46%, showing foreign investor confidence.

Limitation

• Price trading below both 50 DMA and 200 DMA signals weak momentum.
• Quarterly profit variation at -91.9% highlights severe earnings pressure.
• Dividend yield of 0.18% is very low for income-focused investors.
• Volume below average, limiting breakout potential.

Company Negative News

• Quarterly PAT declined to 27.9 Cr. from 51.3 Cr., showing earnings pressure.
• DII holdings decreased by 3.59%, reflecting reduced domestic institutional confidence.

Company Positive News

• FII holdings increased, reflecting foreign support.
• Strong ROE and ROCE highlight operational efficiency despite recent weakness.

Industry

• Industry PE at 18.8 is higher than KNRCON’s P/E of 12.3, suggesting undervaluation relative to peers.
• Infrastructure and construction sector benefits from government spending but faces cyclical risks and margin pressures.

Conclusion

⚖️ KNRCON is consolidating near support levels with weak momentum but oversold indicators suggest potential rebound. Entry around 140–150 ₹ offers favorable risk-reward, while exits near 165–180 ₹ are optimal. Long-term investors should be cautious due to earnings volatility and weak sentiment, while short-term traders may find opportunities in technical rebounds.