OLECTRA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | OLECTRA | Market Cap | 8,797 Cr. | Current Price | 1,071 ₹ | High / Low | 1,714 ₹ |
| Stock P/E | 60.3 | Book Value | 137 ₹ | Dividend Yield | 0.04 % | ROCE | 21.0 % |
| ROE | 14.2 % | Face Value | 4.00 ₹ | DMA 50 | 1,184 ₹ | DMA 200 | 1,321 ₹ |
| Chg in FII Hold | -0.14 % | Chg in DII Hold | 0.13 % | PAT Qtr | 52.8 Cr. | PAT Prev Qtr | 22.4 Cr. |
| RSI | 42.6 | MACD | -43.9 | Volume | 8,92,684 | Avg Vol 1Wk | 7,37,931 |
| Low price | 965 ₹ | High price | 1,714 ₹ | PEG Ratio | 1.08 | Debt to equity | 0.28 |
| 52w Index | 14.1 % | Qtr Profit Var | 9.50 % | EPS | 17.8 ₹ | Industry PE | 30.8 |
📊 Chart & Trend Analysis: OLECTRA is trading at ₹1,071, below its 50 DMA (₹1,184) and 200 DMA (₹1,321), reflecting a bearish undertone. RSI at 42.6 indicates weak momentum but not oversold, while MACD (-43.9) confirms strong negative bias. Bollinger Bands show price leaning toward the lower band, suggesting selling pressure. Current volume (8,92,684) is slightly above the 1-week average (7,37,931), indicating active participation during the decline.
📈 Momentum Signals: Short-term momentum is weak, with RSI below 50 and MACD negative. A reversal signal may emerge if RSI climbs above 50 and price sustains above ₹1,150.
💡 Entry Zone: ₹965–₹1,020 (support zone, near 52-week low)
🚪 Exit Zone: ₹1,180–₹1,320 (resistance near 50 DMA & 200 DMA)
🔎 Trend Status: The stock is consolidating with bearish bias, showing potential reversal only if support holds and RSI recovers.
Positive
- Strong ROCE (21.0%) and ROE (14.2%) indicate efficient operations.
- Quarterly PAT improved to ₹52.8 Cr. vs ₹22.4 Cr., showing 9.5% growth.
- EPS at ₹17.8 reflects solid earnings power.
- PEG ratio at 1.08 suggests fair growth-adjusted valuation.
Limitation
- Stock P/E at 60.3 is significantly higher than industry average (30.8), making valuations stretched.
- Price trading below both 50 DMA and 200 DMA indicates weak technical strength.
- Dividend yield at 0.04% is negligible.
Company Negative News
- Decline in FII holding (-0.14%) signals reduced foreign investor confidence.
Company Positive News
- Increase in DII holding (+0.13%) shows domestic institutional support.
- Quarterly profit growth highlights improving fundamentals.
Industry
- Industry PE at 30.8 is much lower than OLECTRA’s, highlighting sector competitiveness.
- EV and clean energy sector demand remains structurally strong, supported by government incentives and adoption trends.
Conclusion
⚖️ OLECTRA is consolidating with bearish bias, trading below key moving averages and showing weak momentum. While fundamentals show improving profits and strong efficiency metrics, stretched valuations and negative technical signals limit upside. Traders may consider entry near ₹965–₹1,020 with exit targets around ₹1,180–₹1,320. Sustained reversal requires RSI recovery above 50 and price stability above 50 DMA.