NEWGEN - Technical Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Technical Rating: 2.3

Here’s a detailed technical analysis of Newgen Software Technologies Ltd (NEWGEN)

📉 Trend Overview

Current Status: Reversing from a prolonged downtrend

Price Action: Trading well below both 50 DMA and 200 DMA — signals bearish momentum

52W Index: Just 11.2% of its 52-week high — indicates deep correction

📈 Moving Averages

Indicator Value (₹) Signal

DMA 50 1,066 Bearish (Price < DMA)

DMA 200 1,101 Bearish (Price < DMA)

Price is ~20% below both key moving averages — confirms strong downtrend

📊 Momentum Indicators

Indicator Value Interpretation

RSI 18.7 Oversold — potential for short-term bounce

MACD -80.1 Bearish — negative crossover

Volume 3,08,589 Below average — weak participation

RSI suggests oversold conditions, but MACD confirms ongoing weakness

📉 Bollinger Bands

Price is hugging the lower band, indicating selling pressure

Could see a technical bounce, but trend remains weak unless volume picks up

📌 Support & Resistance Zones

Level Price (₹) Strength

Support 1 840 Strong

Support 2 790 Moderate

Resistance 1 910 Moderate

Resistance 2 1,020 Strong

Entry Zone: ₹840–₹860 (if bounce confirmed)

Exit Zone: ₹910–₹1,020 (watch for rejection)

🔍 Short-Term Signals

RSI < 20: Oversold — watch for reversal candles

MACD Negative: Avoid aggressive long positions

Volume Drop: Weak conviction — wait for confirmation

🧠 Summary

Trend: Bearish with signs of reversal

Momentum: Weak but oversold

Volume: Below average

Volatility: High

Entry: ₹840–₹860 (only if reversal confirmed)

Exit: ₹910–₹1,020

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