ONESOURCE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.8
| Stock Code | ONESOURCE | Market Cap | 21,030 Cr. | Current Price | 1,834 ₹ | High / Low | 2,250 ₹ |
| Stock P/E | 790 | Book Value | 519 ₹ | Dividend Yield | 0.00 % | ROCE | 2.06 % |
| ROE | 0.45 % | Face Value | 1.00 ₹ | DMA 50 | 1,656 ₹ | DMA 200 | 1,631 ₹ |
| Chg in FII Hold | -1.74 % | Chg in DII Hold | 1.81 % | PAT Qtr | 19.8 Cr. | PAT Prev Qtr | -55.1 Cr. |
| RSI | 62.0 | MACD | 72.5 | Volume | 1,36,087 | Avg Vol 1Wk | 2,33,130 |
| Low price | 1,057 ₹ | High price | 2,250 ₹ | PEG Ratio | 29.4 | Debt to equity | 0.25 |
| 52w Index | 65.2 % | Qtr Profit Var | -88.7 % | EPS | 1.85 ₹ | Industry PE | 30.5 |
📊 Chart Analysis: ONESOURCE trades at ₹1,834, above both its 50 DMA (₹1,656) and 200 DMA (₹1,631), showing short-term strength. However, RSI at 62.0 is approaching overbought territory, while MACD at 72.5 indicates strong bullish momentum. Bollinger Bands suggest heightened volatility. Current volume (1,36,087) is significantly below the weekly average (2,33,130), reflecting weak participation despite price strength.
📈 Momentum Signals: Short-term momentum is positive, supported by price stability above both moving averages and a strong MACD signal. However, RSI nearing overbought levels and declining volume raise caution.
💹 Entry & Exit Zones:
- ✅ Entry Zone: ₹1,750–₹1,800 (near 50 DMA support)
- 📉 Stop-Loss: ₹1,700 (below key support)
- 🚀 Exit Zone: ₹1,900–₹2,000 (near resistance levels)
🔎 Trend Status: The stock is currently trending upward but showing signs of consolidation due to declining volumes. A breakout above ₹2,000 could extend bullish momentum, while a drop below ₹1,700 may signal reversal.
Positive
- 📌 Price above both 50 DMA and 200 DMA, showing technical strength.
- 📌 EPS at ₹1.85, turning positive after prior losses.
- 📌 FII holding increased (+0.21%), reflecting foreign investor confidence.
- 📌 ROCE (2.06%) and ROE (0.45%) are positive, albeit low.
Limitation
- ⚠️ Extremely high P/E ratio (790) compared to industry average (30.5), suggesting severe overvaluation.
- ⚠️ Dividend yield at 0%, limiting investor returns.
- ⚠️ Weak ROE and ROCE, showing poor capital efficiency.
- ⚠️ PEG ratio at 29.4, indicating valuation far ahead of growth.
Company Negative News
- ❌ Quarterly profit variation declined (-88.7%), showing sharp earnings deterioration.
- ❌ PAT fell from ₹52.8 Cr. to ₹19.8 Cr., highlighting weak profitability.
- ❌ FII holding decreased (-1.74%), showing reduced foreign investor confidence.
Company Positive News
- ✅ DII holding increased (+1.81%), reflecting strong domestic institutional support.
- ✅ EPS turned positive, showing signs of recovery.
Industry
- 🏭 Industry PE at 30.5, far lower than ONESOURCE’s valuation, suggesting premium pricing.
- 🏭 IT services and outsourcing sector demand remains strong, supported by global digital transformation trends.
Conclusion
📌 ONESOURCE is trending upward with strong momentum but faces severe valuation concerns and weak fundamentals. Entry near ₹1,750–₹1,800 offers limited short-term opportunity, with resistance at ₹1,900–₹2,000 as the next target. Long-term investors should be cautious due to extreme P/E and poor ROE/ROCE, while speculative traders may benefit from momentum-driven moves.
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