NEWGEN - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 19 Sept 25, 2:16 pm

Technical Rating: 3.7

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

📊 Trend Overview

Current Trend: Mildly bearish

Phase: Consolidating with downside bias

Bias: Neutral to negative, as price struggles below key moving averages and momentum indicators weaken

📈 Technical Indicators Analysis

🔹 Moving Averages

50 DMA: ₹931

200 DMA: ₹1,037

Current Price: ₹919

Price is below both DMAs → signals short-term and medium-term weakness

Downward slope on 200 DMA → confirms loss of long-term momentum

🔹 RSI (Relative Strength Index)

RSI: 56.9

Neutral zone → no overbought/oversold signal

Indicates mild bullish bias but lacks conviction

🔹 MACD (Moving Average Convergence Divergence)

MACD: -5.54

Negative MACD → confirms bearish divergence

No crossover → trend remains weak

🔹 Bollinger Bands

Price near middle band → consolidation zone

Bands moderately tight → low volatility

No breakout or squeeze pattern visible

🔹 Volume Trends

Current Volume: 72.1 lakh

1-Week Avg Volume: 16.2 lakh

Volume spike suggests speculative interest

Not backed by strong price action → lacks directional clarity

📌 Support & Resistance Levels

Level Price (₹) Commentary

Support 1 880 Minor support zone

Support 2 820 Previous swing low

Resistance 1 931 50 DMA, immediate ceiling

Resistance 2 1,000 Psychological resistance

Resistance 3 1,037 200 DMA, major breakout level

🎯 Entry & Exit Zones

Optimal Entry Zone: ₹880–₹900 (on pullback near support)

Exit Zone / Profit Booking: ₹1,000–₹1,037 (resistance and breakout target)

🔍 Momentum Signals

Short-Term: Weak momentum, MACD and RSI not confirming strength

Medium-Term: Consolidation likely to continue unless price breaks above ₹931 with volume

Volume: Elevated, but needs directional confirmation

🧭 Conclusion

NEWGEN is currently consolidating with mild bearish undertones. Technical indicators show indecision, and the price is struggling to reclaim the 50 DMA. Traders may consider accumulating near ₹880 with a tight stop-loss, targeting ₹1,000–₹1,037 if volume confirms a breakout.

Would you like to compare this setup with other mid-cap IT stocks or set alerts for trend reversal signals?

Edit in a page