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PEL - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.2

Last Updated Time : 17 Jan 26, 11:52 am

Technical Rating: 3.2

Stock Code PEL Market Cap 25,483 Cr. Current Price 1,124 ₹ High / Low 1,356 ₹
Stock P/E 61.4 Book Value 974 ₹ Dividend Yield 0.98 % ROCE 4.90 %
ROE 2.31 % Face Value 2.00 ₹ DMA 50 1,144 ₹ DMA 200 1,096 ₹
Chg in FII Hold -0.89 % Chg in DII Hold 0.86 % PAT Qtr 162 Cr. PAT Prev Qtr -23.3 Cr.
RSI 48.4 MACD -6.85 Volume 0 Avg Vol 1Wk 0
Low price 848 ₹ High price 1,356 ₹ PEG Ratio -3.22 Debt to equity 0.38
52w Index 54.4 % Qtr Profit Var -28.8 % EPS 19.4 ₹ Industry PE 21.9

📊 Chart Patterns: PEL is trading close to its 50 DMA (1,144 ₹) and slightly above the 200 DMA (1,096 ₹), indicating consolidation. Price action suggests support near 1,100 ₹ and resistance around 1,300–1,350 ₹.

📈 Moving Averages: Current price (1,124 ₹) is hovering near both 50 DMA and 200 DMA → neutral trend.

📉 RSI: 48.4 → Neutral zone, neither overbought nor oversold.

📉 MACD: -6.85 → Bearish crossover, momentum weak.

📊 Bollinger Bands: Price near mid-band, suggesting sideways consolidation with limited volatility.

📊 Volume Trends: Reported volume is 0, making participation unclear. Lack of liquidity signals weak momentum confirmation.

🚀 Momentum Signals: Neutral RSI + weak MACD → cautious outlook, limited upside in near term.

🎯 Entry Zone: 1,080–1,100 ₹ (near support).

🎯 Exit Zone: 1,300–1,350 ₹ (resistance near recent highs).

📌 Trend Status: Consolidating with mild bearish bias.


Positive

  • 💡 EPS of 19.4 ₹ supports valuation stability.
  • 💡 Dividend yield of 0.98% provides shareholder value.
  • 💡 DII holdings increased (+0.86%), showing domestic investor confidence.
  • 💡 PAT turned positive (162 Cr. vs -23.3 Cr. previous quarter).

Limitation

  • ⚠️ Current price stuck near both 50 DMA and 200 DMA, showing lack of clear trend.
  • ⚠️ High P/E ratio (61.4) compared to industry PE (21.9), indicating premium valuation.
  • ⚠️ Weak ROCE (4.90%) and ROE (2.31%) reflect poor efficiency.
  • ⚠️ PEG ratio negative (-3.22), suggesting weak growth prospects.

Company Negative News

  • 📉 FII holdings reduced (-0.89%).
  • 📉 Quarterly profit variation -28.8% indicates earnings pressure.

Company Positive News

  • 📈 PAT recovery (162 Cr. vs -23.3 Cr. previous quarter).
  • 📈 DII holdings increased (+0.86%).

Industry

  • 🏭 Industry PE at 21.9 vs stock PE 61.4 → PEL trading at steep premium.
  • 🏭 Financial services sector outlook remains steady but competitive.

Conclusion

📌 PEL is consolidating near its moving averages with neutral RSI and weak MACD. Entry around 1,080–1,100 ₹ offers favorable positioning, with exit near 1,300–1,350 ₹. While fundamentals show PAT recovery and dividend support, high valuation and weak efficiency metrics suggest cautious positioning until a breakout above 1,350 ₹ confirms reversal.

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