OLAELEC - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

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Technical Rating: 2.7

Technical Analysis Summary

• Trend: Reversing with weak momentum
• Moving Averages: Price (₹50.3) is below both DMA 50 (₹52.8) and DMA 200 (₹57.1), indicating bearish alignment
• RSI (42.0): Weak momentum, approaching oversold territory
• MACD (-0.71): Bearish crossover, confirming downward pressure
• Bollinger Bands: Price near lower band, suggesting oversold conditions but no reversal signal yet
• Volume: Below average (91.1L vs 124.6L), indicating declining interest

Entry & Exit Zones

• Support: ₹45 – ₹48 (recent base and psychological level)
• Resistance: ₹55 – ₹58 (DMA levels and prior breakdown zone)
• Optimal Entry: ₹46 – ₹50 if RSI stabilizes and MACD flattens
• Exit Zone: ₹55 – ₹58 if price rebounds and faces resistance

Positive

• Low debt-to-equity ratio (0.05) supports financial flexibility
• Improving quarterly PAT from ₹-56 Cr. to ₹-11 Cr. shows signs of operational recovery
• Strong DII interest (+3.91%) indicates domestic institutional confidence

Limitation

• Negative ROE (-0.58%) and low ROCE (0.59%) reflect poor capital efficiency
• EPS of ₹-0.10 and lack of profitability
• Price significantly below key moving averages and 52-week high
• FII holding declined by 1.23%, signaling foreign investor caution

Company Negative News

• Concerns over sustained losses and high burn rate in EV manufacturing and infrastructure

Company Positive News

• Expansion in EV product lineup and charging infrastructure
• Improved cost control and narrowing quarterly losses

Industry

• OLAELEC operates in the electric vehicle and clean mobility sector
• Peers include Ather Energy, Tata Motors (EV division), and Hero Electric

Conclusion

OLAELEC is currently reversing with weak technical indicators and limited momentum. While improving quarterly losses and strong DII interest offer some optimism, valuation concerns and bearish signals suggest caution. Traders may consider speculative entry near ₹48 with targets around ₹58, watching RSI and MACD for signs of stabilization.