OLECTRA - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.8

📊 Chart Patterns: OLECTRA is trading at 1,177 ₹, well below its 50 DMA (1,332 ₹) and 200 DMA (1,384 ₹). The chart shows a steep correction from the 52-week high (1,714 ₹), with support visible near 1,150–1,170 ₹.

📈 Moving Averages: Price is below both short- and long-term averages, confirming bearish sentiment. Sustaining above 1,332–1,384 ₹ is crucial for recovery.

📉 RSI: At 27.9, RSI is in oversold territory, suggesting potential for a short-term rebound but overall weakness.

📉 MACD: Strongly negative (-60.4), 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 (3.26 lakh) is slightly above average weekly volume (2.55 lakh), showing increased activity but largely on the selling side.

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

🎯 Entry Zone: 1,150–1,180 ₹ (near support). Suitable only for speculative rebound trades with strict risk management.

🎯 Exit Zone: 1,300–1,350 ₹ (near 50 DMA resistance). Strong resistance at 1,380–1,400 ₹ (200 DMA).

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

Positive

• Quarterly PAT improved (52.8 Cr. vs 22.4 Cr.), showing growth (+9.5%).
• FII holdings increased (+1.38%) and DII holdings increased (+0.21%).
• ROCE (21.0%) and ROE (14.2%) indicate decent efficiency.
• PEG ratio (1.19) suggests reasonable growth prospects relative to valuation.

Limitation

• High P/E (66.3) compared to industry average (33.9), indicating premium valuation.
• RSI oversold, reflecting weak momentum.
• MACD strongly negative, showing short-term weakness.
• Dividend yield is very low (0.04%).

Company Negative News

• Stock corrected sharply from 1,714 ₹ to 1,177 ₹.
• Technical indicators show bearish momentum.

Company Positive News

• Quarterly PAT improved significantly.
• FII and DII holdings both increased.
• Efficiency metrics (ROCE 21%, ROE 14.2%) remain supportive.

Industry

• Industry PE is 33.9, much lower than OLECTRA’s 66.3, highlighting premium valuation.
• EV and transport sector remains growth-oriented, supported by government incentives and rising adoption.

Conclusion

⚠️ OLECTRA is in a bearish trend, trading below key moving averages with oversold RSI. Fundamentals show improving profitability and investor confidence, but high valuation and weak technical momentum limit upside. Traders may consider speculative entries near 1,150–1,180 ₹ with exits around 1,300–1,350 ₹. Long-term investors should wait for sustained profitability and a breakout above 1,384 ₹ before committing further.