NEWGEN - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | NEWGEN | Market Cap | 7,198 Cr. | Current Price | 506 ₹ | High / Low | 1,379 ₹ |
| Stock P/E | 22.7 | Book Value | 115 ₹ | Dividend Yield | 0.99 % | ROCE | 26.2 % |
| ROE | 20.8 % | Face Value | 10.0 ₹ | DMA 50 | 500 ₹ | DMA 200 | 721 ₹ |
| Chg in FII Hold | -2.86 % | Chg in DII Hold | -0.83 % | PAT Qtr | 110 Cr. | PAT Prev Qtr | 79.8 Cr. |
| RSI | 60.6 | MACD | 5.39 | Volume | 1,36,34,608 | Avg Vol 1Wk | 49,58,684 |
| Low price | 401 ₹ | High price | 1,379 ₹ | PEG Ratio | 0.95 | Debt to equity | 0.02 |
| 52w Index | 10.7 % | Qtr Profit Var | 8.13 % | EPS | 20.0 ₹ | Industry PE | 21.6 |
📈 Chart & Trend: NEWGEN is trading near its 50 DMA (500 ₹) but below its 200 DMA (721 ₹), indicating short-term strength with medium-term weakness. RSI at 60.6 reflects mildly bullish momentum, while MACD at 5.39 confirms a positive crossover. Bollinger Bands are moderately expanded, suggesting active volatility. The stock is trending upward in the short term but remains in consolidation relative to longer-term averages.
🔎 Momentum Signals: Entry zone is favorable near 495–505 ₹ support. Resistance lies at 530–540 ₹. A breakout above 540 ₹ could extend toward 560–570 ₹, while a breakdown below 490 ₹ risks pullback toward 475–480 ₹.
📊 Volume Trends: Current volume (1.36 Cr.) is significantly higher than the 1-week average (49.6 lakh), showing strong participation and accumulation interest, supporting bullish continuation.
Positive
- Strong ROCE (26.2%) and ROE (20.8%) highlight efficient capital use.
- Debt-to-equity ratio of 0.02 indicates a near debt-free balance sheet.
- Quarterly PAT growth (110 Cr. vs 79.8 Cr.) shows earnings improvement (+8.13%).
- EPS of 20.0 ₹ supports valuation comfort.
Limitation
- Stock trading below 200 DMA signals medium-term weakness.
- Institutional outflows: FII (−2.86%) and DII (−0.83%) reduce confidence.
- 52-week index at 10.7% highlights underperformance relative to peers.
Company Negative News
- Institutional investors reduced holdings, signaling cautious sentiment.
- Stock remains far below its 52-week high (1,379 ₹), showing long-term weakness.
Company Positive News
- Quarterly profit growth (+8.13%) highlights operational improvement.
- Strong volume surge supports short-term bullish momentum.
Industry
- Industry PE at 21.6 highlights NEWGEN trades at fair valuation (P/E 22.7).
- IT/software sector outlook remains positive, supported by digital adoption and enterprise demand.
Conclusion
⚖️ NEWGEN is consolidating with short-term bullish signals supported by strong volumes and earnings growth. Entry near 495–505 ₹ offers favorable risk-reward, while resistance lies at 530–540 ₹. Institutional outflows and medium-term weakness remain risks. Suitable for swing trades with disciplined exits near resistance levels.