MASTEK - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.1
| Stock Code | MASTEK | Market Cap | 6,507 Cr. | Current Price | 2,099 ₹ | High / Low | 2,818 ₹ |
| Stock P/E | 35.6 | Book Value | 260 ₹ | Dividend Yield | 1.09 % | ROCE | 15.5 % |
| ROE | 13.5 % | Face Value | 5.00 ₹ | DMA 50 | 2,148 ₹ | DMA 200 | 2,313 ₹ |
| Chg in FII Hold | 0.19 % | Chg in DII Hold | 1.00 % | PAT Qtr | 75.2 Cr. | PAT Prev Qtr | 41.9 Cr. |
| RSI | 48.6 | MACD | -31.0 | Volume | 1,22,956 | Avg Vol 1Wk | 2,46,786 |
| Low price | 1,883 ₹ | High price | 2,818 ₹ | PEG Ratio | 1.54 | Debt to equity | 0.01 |
| 52w Index | 23.1 % | Qtr Profit Var | -4.11 % | EPS | 41.9 ₹ | Industry PE | 25.7 |
📈 Chart Patterns: MASTEK is trading at 2,099 ₹, well below its recent high of 2,818 ₹ and close to its support zone of 1,883–1,900 ₹. The price action suggests weakness with resistance near 2,140–2,150 ₹ (DMA 50) and 2,300–2,320 ₹ (DMA 200).
📊 Moving Averages: Current price is below both DMA 50 (2,148 ₹) and DMA 200 (2,313 ₹), indicating bearish sentiment and medium-term weakness.
📉 RSI: At 48.6, RSI is neutral, showing balanced momentum but leaning toward weakness.
📈 MACD: Negative MACD (-31.0) signals bearish momentum, aligning with the downtrend.
📊 Bollinger Bands: Price is near the lower band, reflecting weakness but also potential for short-term mean reversion.
📊 Volume Trends: Current volume (1.22 lakh) is lower than average weekly volume (2.46 lakh), showing reduced participation and lack of strong conviction.
🎯 Momentum Signals: Entry zone: 1,900–2,000 ₹ (support). Exit zone: 2,140–2,150 ₹ (resistance). A breakout above 2,150 ₹ could target 2,300–2,320 ₹.
🔎 Trend Status: The stock is reversing downward with weak momentum, though neutral RSI suggests possible consolidation.
Positive
- 📌 EPS of 41.9 ₹ is healthy compared to peers.
- 📌 Debt-to-equity ratio of 0.01 reflects strong financial stability.
- 📌 Dividend yield of 1.09% provides income support.
- 📌 FII (+0.19%) and DII (+1.00%) holdings increased, showing institutional confidence.
Limitation
- ⚠️ Current price below both DMA 50 and DMA 200 shows technical weakness.
- ⚠️ PEG ratio of 1.54 suggests limited growth prospects relative to valuation.
- ⚠️ Volume below average indicates weak participation in the current trend.
Company Negative News
- ❌ Quarterly PAT declined from 41.9 Cr. to 75.2 Cr. (-4.11% variation), showing earnings volatility.
- ❌ Stock has fallen significantly from its 52-week high of 2,818 ₹.
Company Positive News
- ✅ Institutional buying (FII and DII increase) reflects confidence in the company’s outlook.
- ✅ Strong balance sheet with negligible debt supports long-term resilience.
Industry
- 🏭 Industry PE at 25.7 is lower than MASTEK’s PE (35.6), suggesting overvaluation compared to peers.
- 🏭 IT services sector remains competitive, driven by digital transformation and global outsourcing demand.
Conclusion
📌 MASTEK is currently reversing downward, trading below key moving averages with weak MACD signals. Entry near 1,900–2,000 ₹ offers limited risk, while resistance at 2,140–2,150 ₹ may cap short-term upside. A breakout above 2,150 ₹ could extend gains toward 2,300–2,320 ₹. Fundamentally stable with low debt and institutional support, but overvaluation and earnings volatility suggest cautious accumulation.