MASTEK - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.2

📉 Chart Patterns & Trend: MASTEK is trading at ₹2,145, below both its 50 DMA (₹2,213) and 200 DMA (₹2,359). This indicates a bearish reversal with weak momentum and declining trendlines. The stock is closer to its recent low of ₹1,883, suggesting vulnerability.

📊 Moving Averages: Price below both short- and long-term averages confirms bearish sentiment. Key support lies near ₹1,880–₹1,900, while resistance is around ₹2,200–₹2,350.

📉 RSI: At 41.6, RSI is neutral-to-weak, suggesting limited upside momentum and potential consolidation.

📉 MACD: Negative MACD (-15.0) signals bearish momentum, reinforcing the downtrend.

📉 Bollinger Bands: Price is near the lower band, indicating oversold conditions. A rebound toward mid-band (~₹2,200) is possible.

📊 Volume Trends: Current volume (22K) is slightly below the weekly average (26K), showing reduced participation. Weak volume confirms lack of strong buying interest.

🎯 Entry Zone: ₹2,050–₹2,100 (near support)

🚪 Exit Zone: ₹2,250–₹2,300 (near resistance)

Positive

• Quarterly PAT improved from ₹41.9 Cr. to ₹75.2 Cr., showing earnings growth.
• EPS of ₹41.9 reflects profitability strength.
• Low debt-to-equity ratio (0.01) ensures financial stability.
• DII holding increased (+1.00%), showing strong domestic institutional support.

Limitation

• Stock trading below both 50 DMA and 200 DMA indicates bearish momentum.
• Quarterly profit variation (-4.11%) shows earnings volatility.
• High P/E (36.3) compared to industry PE (26.4) suggests premium valuation.
• PEG ratio of 1.58 highlights expensive valuation relative to growth.

Company Negative News

• Weak momentum indicators (MACD negative, RSI near neutral) suggest limited upside in near term.
• Reduced trading volume highlights lack of strong investor participation.

Company Positive News

• Strong domestic institutional support with DII holdings rising.
• Profit growth quarter-on-quarter despite overall volatility.
• Debt-free balance sheet supports long-term stability.

Industry

• Industry PE at 26.4 is lower than MASTEK’s PE (36.3), suggesting overvaluation compared to peers.
• IT services sector remains competitive, driven by digital transformation and global outsourcing demand.

Conclusion

📌 MASTEK is in a bearish reversal, trading below key moving averages with negative MACD and weak RSI. Entry near ₹2,050–₹2,100 may offer short-term bounce potential, while resistance at ₹2,250–₹2,300 limits upside. Despite strong fundamentals and institutional support, high valuation and weak momentum warrant caution in the near term.