KNRCON - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.6

📉 KNRCON is reversing with weak momentum indicators and trading well below key moving averages, signaling bearish sentiment and limited short-term upside.

📊 Technical Analysis

• Trend: The stock is in a reversal phase, having declined sharply from its 52-week high of ₹359 to ₹181.
• Moving Averages: Price is below both 50 DMA (₹196) and 200 DMA (₹226), confirming a bearish trend.
• RSI (31.1): Near oversold territory, suggesting weak momentum with potential for a technical bounce.
• MACD (-3.65): Negative crossover, reinforcing bearish momentum.
• Bollinger Bands: Price is hugging the lower band, indicating oversold conditions and increased volatility.
• Volume: Current volume (13.5L) is higher than 1-week average (10.1L), suggesting possible accumulation at lower levels.

🎯 Entry & Exit Zones

• Support Zone: ₹175 – ₹180 (recent low and psychological support)
• Resistance Zone: ₹195 – ₹200 (50 DMA and prior breakdown zone)
• Optimal Entry: ₹180 – ₹185 (if RSI stabilizes and MACD flattens)
• Exit Target: ₹195 – ₹205 (short-term recovery zone)

✅ Positive

• Strong ROCE (27.4%) and ROE (20.5%) indicate efficient capital use.
• EPS of ₹22.9 and low P/E (7.84) suggest undervaluation.
• PEG ratio of 0.30 indicates attractive valuation relative to growth.
• Zero debt-to-equity ratio reflects a clean balance sheet.

⚠️ Limitation

• Price is trading well below key moving averages, indicating sustained bearish pressure.
• MACD and RSI are weak, showing limited momentum.
• 52-week index at 0.50% reflects significant underperformance.

📉 Company Negative News

• Quarterly PAT dropped from ₹75.2 Cr. to ₹51.3 Cr., a 61.7% decline.
• DII holding decreased by 3.59%, indicating reduced domestic institutional confidence.

📈 Company Positive News

• FII holding increased by 0.46%, showing some foreign investor interest.
• Volume spike may indicate accumulation at lower levels.

🏗️ Industry

• Industry P/E is 22.1, much higher than KNRCON’s 7.84, suggesting relative undervaluation.
• Infrastructure sector is cyclical and influenced by government spending and project execution timelines.

🧾 Conclusion

• KNRCON is currently reversing with weak technical indicators and bearish sentiment.
• Short-term traders should wait for RSI to rise above 40 and MACD to flatten before entering.
• Long-term investors may consider accumulating near ₹180 with a target of ₹205, maintaining stop-loss below ₹175.