NEWGEN - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | NEWGEN | Market Cap | 6,235 Cr. | Current Price | 438 ₹ | High / Low | 1,336 ₹ |
| Stock P/E | 19.6 | Book Value | 115 ₹ | Dividend Yield | 1.37 % | ROCE | 26.2 % |
| ROE | 20.8 % | Face Value | 10.0 ₹ | DMA 50 | 486 ₹ | DMA 200 | 686 ₹ |
| Chg in FII Hold | -2.86 % | Chg in DII Hold | -0.83 % | PAT Qtr | 110 Cr. | PAT Prev Qtr | 79.8 Cr. |
| RSI | 38.4 | MACD | -6.92 | Volume | 7,32,904 | Avg Vol 1Wk | 6,55,211 |
| Low price | 401 ₹ | High price | 1,336 ₹ | PEG Ratio | 0.82 | Debt to equity | 0.02 |
| 52w Index | 3.94 % | Qtr Profit Var | 8.13 % | EPS | 20.0 ₹ | Industry PE | 20.7 |
📈 Chart & Trend: NEWGEN is trading at 438 ₹, below both its 50 DMA (486 ₹) and 200 DMA (686 ₹), reflecting short-term and long-term weakness. Support lies at 425–430 ₹, with resistance around 460–470 ₹.
🔎 Momentum Signals: RSI at 38.4 indicates bearish momentum nearing oversold territory. MACD at -6.92 confirms bearish crossover pressure. Entry zone: 425–430 ₹. Exit zone: 460–470 ₹.
📊 Volume Trends: Current volume (7.33 Lakh) is slightly above the 1-week average (6.55 Lakh), showing active participation despite weakness.
📉 Bollinger Bands: Bands are moderately wide, suggesting volatility expansion with downside bias.
📌 Trend Status: The stock is reversing downward with weak momentum signals and bearish undertones.
Positive
- Strong ROCE (26.2%) and ROE (20.8%) highlight efficient capital use.
- Debt-to-equity ratio of 0.02 indicates near debt-free balance sheet.
- EPS of 20.0 ₹ supports profitability.
- Quarterly PAT growth (110 Cr. vs 79.8 Cr.) shows earnings improvement (+8.13%).
Limitation
- Stock trading below both 50 DMA and 200 DMA signals weakness.
- RSI and MACD both point to bearish momentum.
- Institutional outflows: FII (-2.86%) and DII (-0.83%) reduce confidence.
- 52-week index at 3.94% highlights severe underperformance relative to peers.
Company Negative News
- Institutional investors reduced holdings, signaling cautious sentiment.
- Stock remains far below its 52-week high (1,336 ₹), showing long-term weakness.
Company Positive News
- Quarterly profit growth (+8.13%) highlights operational improvement.
- EPS strength supports valuation comfort despite technical weakness.
Industry
- Industry PE at 20.7 highlights NEWGEN trades at fair valuation (P/E 19.6).
- IT/software sector outlook remains positive, supported by digital adoption and enterprise demand.
Conclusion
NEWGEN is reversing downward with weak momentum, trading below key moving averages. Strong fundamentals and earnings growth provide stability, but institutional outflows and technical weakness limit upside. Best suited for cautious entry near 425–430 ₹ with profit booking around 460–470 ₹.
NEWGEN is currently in a reversal phase with weak momentum. To deepen the view, I can extend this into a peer benchmarking analysis or a sector overlay comparison to highlight its positioning against other IT/software peers.