KPITTECH - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.4

📉 KPITTECH is currently reversing with weakening momentum and trading below key moving averages, though long-term fundamentals remain strong.

📊 Technical Analysis

• Trend: The stock is reversing from its 52-week high of ₹1,563 and currently trading below both 50 DMA (₹1,198) and 200 DMA (₹1,282), indicating short-term bearish sentiment

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• Moving Averages: Price is below key averages, confirming downward pressure.
• RSI (45.7): Mid-range, suggesting neutral momentum with a slight bearish bias

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• MACD (-6.98): Negative crossover, reinforcing weak momentum

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• Bollinger Bands: Price is near the lower band, indicating oversold conditions and potential for a technical bounce.
• Volume: Current volume (5.07L) is below 1-week average (6.83L), showing declining interest and participation

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🎯 Entry & Exit Zones

• Support Zone: ₹1,140 – ₹1,160 (recent base and psychological support)
• Resistance Zone: ₹1,200 – ₹1,230 (DMA levels and prior swing highs)
• Optimal Entry: ₹1,150 – ₹1,165 (if RSI stabilizes and MACD flattens)
• Exit Target: ₹1,230 – ₹1,260 (short-term recovery zone)

✅ Positive

• Strong ROCE (34.4%) and ROE (27.1%) indicate excellent capital efficiency.
• EPS of ₹23.2 and PEG ratio of 1.90 suggest reasonable valuation for growth.
• Low debt-to-equity ratio (0.07) reflects financial stability.
• DII holding increased by 1.53%, showing domestic institutional confidence.

⚠️ Limitation

• Price is trading below both 50 and 200 DMA, indicating sustained bearish pressure.
• MACD and RSI are weak, showing limited momentum.
• Volume is declining, suggesting lack of strong buying interest.

📉 Company Negative News

• FII holding decreased by 1.18%, reflecting reduced foreign investor confidence.
• Stock has dropped significantly from its high of ₹1,563 to ₹1,165.

📈 Company Positive News

• Quarterly PAT surged from ₹132 Cr. to ₹229 Cr., a 204% increase.
• Strong fundamentals and institutional accumulation support long-term value.

💻 Industry

• Industry P/E is 29.6, significantly lower than KPITTECH’s 50.2, suggesting relative overvaluation.
• IT consulting and software sector is growth-oriented and driven by digital transformation and global tech demand.

🧾 Conclusion

• KPITTECH is currently reversing with weak technical indicators and bearish sentiment.
• Short-term traders should wait for RSI to rise above 50 and MACD to flatten before entering.
• Long-term investors may consider accumulating near ₹1,160 with a target of ₹1,260, maintaining stop-loss below ₹1,140.

Sources

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