OLAELEC - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 2.4

📊 Chart Patterns: OLAELEC is trading at 34.4 ₹, well below its 50 DMA (42.4 ₹) and 200 DMA (52.2 ₹). The chart shows a steep downtrend from its 52-week high (100 ₹), with support visible near 31–33 ₹.

📈 Moving Averages: Price is below both short- and long-term averages, confirming strong bearish sentiment.

📉 RSI: At 23.1, RSI is in oversold territory, suggesting potential for a short-term rebound but overall weakness.

📉 MACD: Negative (-3.12), showing bearish crossover and continuation of downward momentum.

📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible volatility squeeze.

📊 Volume Trends: Current volume (20.1 crore) is significantly higher than average weekly volume (12.0 crore), showing heavy selling pressure and heightened volatility.

📍 Momentum Signals: Short-term momentum is bearish. Oversold RSI may trigger a technical bounce, but trend remains weak.

🎯 Entry Zone: 31–34 ₹ (near support). Suitable only for speculative rebound trades with strict risk management.

🎯 Exit Zone: 40–45 ₹ (near 50 DMA resistance). Strong resistance at 52 ₹ (200 DMA).

🔎 Trend Status: The stock is reversing downward and currently in a bearish phase with weak consolidation attempts.

Positive

• DII holdings increased significantly (+3.91%), showing domestic investor confidence.
• Debt-to-equity ratio is very low (0.04), ensuring financial stability.
• Book value of 25 ₹ provides some valuation cushion.

Limitation

• Negative ROE (-0.58%) and very low ROCE (0.59%) indicate poor efficiency.
• No dividend yield (0.00%), reducing investor appeal.
• Price trading far below both 50 DMA and 200 DMA.
• EPS negative (-0.11 ₹), showing lack of profitability.

Company Negative News

• Company continues to post losses (PAT -14 Cr. vs -11 Cr.).
• Quarterly profit variation shows weakness (-27.3%).
• FII holdings declined (-1.23%).
• Stock corrected sharply from 100 ₹ to 34.4 ₹.

Company Positive News

• DII holdings increased (+3.91%).
• Debt-to-equity ratio remains low, supporting balance sheet strength.

Industry

• Industry PE is 29.6, but OLAELEC has no meaningful P/E due to losses.
• EV sector remains growth-oriented, supported by government incentives and rising adoption, but profitability is key.

Conclusion

⚠️ OLAELEC is in a bearish trend, trading below key moving averages with oversold RSI. Fundamentals show low debt and strong domestic investor support, but persistent losses and weak efficiency metrics limit upside. Traders may consider speculative entries near 31–34 ₹ with exits around 40–45 ₹. Long-term investors should wait for profitability to stabilize before committing further.