KPIL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.2

📊 Chart Patterns & Trend: KPIL is trading below both its 50 DMA (1,210 ₹) and 200 DMA (1,185 ₹), showing weakness. The price action suggests a reversal from recent highs and is now testing support zones.

📈 Moving Averages: Bearish setup as the current price (1,150 ₹) is below both 50 DMA and 200 DMA. Resistance lies around 1,185–1,210 ₹.

📉 RSI: At 28.8, RSI indicates oversold conditions, suggesting potential for a short-term bounce but overall weak momentum.

📉 MACD: Negative at -23.8, 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 (1,56,003) is higher than average weekly volume (1,21,794), showing selling pressure with strong participation.

🎯 Entry Zone: 1,100–1,130 ₹ (near support levels).

🎯 Exit Zone: 1,185–1,210 ₹ (resistance at DMA levels).

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

Positive

• Strong quarterly profit growth (51.1% YoY, PAT ~200 Cr).
• EPS at 46.8 ₹ indicates solid earnings power.
• PEG ratio of 0.75 suggests reasonable valuation relative to growth.
• FII holdings increased slightly (+0.14%), showing foreign investor confidence.

Limitation

• Stock trading below both 50 DMA and 200 DMA, signaling weakness.
• RSI at 28.8 shows oversold but also weak momentum.
• MACD negative, confirming bearish trend continuation.
• DII holdings decreased (-0.71%), showing reduced domestic institutional support.
• Debt-to-equity ratio at 0.50 is relatively high compared to peers.

Company Negative News

• Flat quarterly PAT (200 Cr vs 201 Cr) shows stagnation in near-term earnings.
• Stock struggling to hold above key moving averages, reflecting technical weakness.

Company Positive News

• Strong YoY profit growth (51.1%) highlights operational efficiency.
• EPS growth and stable dividend yield (0.78%) support investor confidence.

Industry

• Industry PE at 18.8 is lower than KPIL’s PE (23.9), showing premium valuation.
• Sector demand supported by infrastructure and power projects, providing long-term growth potential.

Conclusion

⚖️ KPIL is currently in a reversal phase with oversold signals. Short-term momentum is weak, but RSI suggests potential for a bounce. Entry opportunities lie near 1,100–1,130 ₹, with resistance around 1,185–1,210 ₹. Fundamentally strong with profit growth and EPS strength, but technically cautious due to bearish MACD and weak moving averages. Suitable for long-term investors; traders should wait for confirmation of reversal before entry.