NEWGEN - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.9
| Stock Code | NEWGEN | Market Cap | 8,162 Cr. | Current Price | 573 ₹ | High / Low | 1,379 ₹ |
| Stock P/E | 26.6 | Book Value | 103 ₹ | Dividend Yield | 0.87 % | ROCE | 27.8 % |
| ROE | 22.4 % | Face Value | 10.0 ₹ | DMA 50 | 774 ₹ | DMA 200 | 915 ₹ |
| Chg in FII Hold | -0.28 % | Chg in DII Hold | 0.10 % | PAT Qtr | 79.8 Cr. | PAT Prev Qtr | 76.7 Cr. |
| RSI | 15.3 | MACD | -70.2 | Volume | 2,58,947 | Avg Vol 1Wk | 4,89,067 |
| Low price | 570 ₹ | High price | 1,379 ₹ | PEG Ratio | 1.17 | Debt to equity | 0.03 |
| 52w Index | 0.31 % | Qtr Profit Var | -4.72 % | EPS | 20.0 ₹ | Industry PE | 23.9 |
📊 Chart & Trend Analysis:
NEWGEN is trading at ₹573, well below its 50 DMA (₹774) and 200 DMA (₹915), indicating strong bearish momentum. RSI at 15.3 is extremely oversold, suggesting potential for a technical rebound. MACD at -70.2 shows a deep negative crossover, confirming strong downward bias. Bollinger Bands place price near the lower band, reflecting heavy selling pressure. Current volume (2.59 lakh) is lower than the 1-week average (4.89 lakh), showing weak participation and lack of strong buying support.
📈 Momentum Signals:
- RSI extremely oversold, potential for short-term bounce.
- MACD strongly negative, confirming bearish trend.
- Price far below both 50 & 200 DMA indicates strong weakness.
- Low volume suggests lack of conviction in current moves.
🎯 Optimal Entry & Exit Zones:
- Entry Zone: ₹565 – ₹575 (near current support, oversold RSI).
- Exit Zone: ₹720 – ₹750 (resistance at 50 DMA).
- Stop Loss: ₹550 (below key support).
📌 Trend Status: The stock is reversing downward sharply, showing strong bearish bias but oversold conditions may trigger a short-term technical rebound.
Positive
- Strong ROCE (27.8%) and ROE (22.4%) highlight efficient capital use.
- Debt-to-equity ratio of 0.03 indicates near debt-free status.
- EPS of ₹20.0 reflects consistent profitability.
- DII holding increased (+0.10%), showing domestic institutional support.
Limitation
- Stock trading far below both 50 DMA and 200 DMA reflects strong technical weakness.
- RSI at 15.3 indicates extreme oversold conditions, showing heavy selling pressure.
- 52-week index at 0.31% highlights poor performance relative to highs.
Company Negative News
- Quarterly PAT declined to ₹79.8 Cr. from ₹76.7 Cr., showing earnings pressure (-4.72%).
- FII holding decreased (-0.28%), signaling reduced foreign investor confidence.
Company Positive News
- EPS strength supports long-term investor confidence.
- DII inflows reflect some domestic institutional support despite weakness.
Industry
- Industry P/E at 23.9 is slightly lower than NEWGEN’s P/E (26.6), suggesting fair valuation alignment.
- IT software and enterprise solutions sector remains growth-oriented, supported by digital transformation trends.
Conclusion
⚖️ NEWGEN is reversing downward with strong bearish bias, trading far below key moving averages and showing weak momentum. While fundamentals such as ROCE, ROE, and debt-free status provide positives, earnings decline and extreme oversold technicals weigh heavily on sentiment. Short-term traders may consider entry near ₹565–₹575 with exits around ₹720–₹750, while long-term investors should wait for earnings recovery and stronger technical confirmation before fresh accumulation.