PERSISTENT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.3
| Stock Code | PERSISTENT | Market Cap | 95,742 Cr. | Current Price | 6,068 ₹ | High / Low | 6,599 ₹ |
| Stock P/E | 60.9 | Book Value | 420 ₹ | Dividend Yield | 0.58 % | ROCE | 28.4 % |
| ROE | 20.9 % | Face Value | 5.00 ₹ | DMA 50 | 6,206 ₹ | DMA 200 | 5,819 ₹ |
| Chg in FII Hold | 1.55 % | Chg in DII Hold | -0.80 % | PAT Qtr | 452 Cr. | PAT Prev Qtr | 459 Cr. |
| RSI | 41.0 | MACD | -52.6 | Volume | 2,88,278 | Avg Vol 1Wk | 4,65,975 |
| Low price | 4,149 ₹ | High price | 6,599 ₹ | PEG Ratio | 3.13 | Debt to equity | 0.05 |
| 52w Index | 78.3 % | Qtr Profit Var | 38.7 % | EPS | 96.4 ₹ | Industry PE | 23.9 |
📊 Chart & Trend Analysis: PERSISTENT is trading at ₹6,068, slightly below its 50 DMA (₹6,206) but above its 200 DMA (₹5,819), reflecting short-term weakness with medium-term support. RSI at 41.0 indicates weak momentum but not oversold, while MACD (-52.6) confirms negative bias. Bollinger Bands show price leaning toward the lower band, suggesting selling pressure. Current volume (2,88,278) is lower than the 1-week average (4,65,975), indicating reduced participation.
📈 Momentum Signals: Short-term momentum remains weak, with RSI below 45 and MACD negative. A reversal signal may emerge if RSI climbs above 50 and price sustains above ₹6,200.
💡 Entry Zone: ₹5,850–₹6,000 (support near 200 DMA)
🚪 Exit Zone: ₹6,250–₹6,450 (resistance near 50 DMA and recent highs)
🔎 Trend Status: The stock is consolidating with mild bearish bias, showing potential reversal if support holds and RSI recovers.
Positive
- Strong ROCE (28.4%) and ROE (20.9%) indicate efficient operations.
- EPS at ₹96.4 reflects robust earnings power.
- Debt-to-equity ratio at 0.05 shows very low leverage.
- Increase in FII holding (+1.55%) signals foreign investor confidence.
- 52-week index return at 78.3% highlights strong long-term performance.
Limitation
- Stock P/E at 60.9 is significantly higher than industry average (23.9), making valuations stretched.
- PEG ratio at 3.13 suggests expensive growth-adjusted valuation.
- Price trading below 50 DMA indicates short-term weakness.
- Volume participation is lower than average, limiting momentum strength.
Company Negative News
- Decline in DII holding (-0.80%) signals reduced domestic institutional confidence.
- Quarterly PAT declined slightly to ₹452 Cr. vs ₹459 Cr., showing earnings pressure.
Company Positive News
- Strong efficiency metrics (ROCE & ROE) highlight operational excellence.
- FII inflows reflect foreign investor optimism.
- Long-term performance remains strong with high 52-week returns.
Industry
- Industry PE at 23.9 is much lower than PERSISTENT’s, highlighting sector competitiveness.
- IT services sector demand remains robust, supported by digital transformation and enterprise technology adoption.
Conclusion
⚖️ PERSISTENT is consolidating with mild bearish bias, trading below its 50 DMA but supported by 200 DMA. While fundamentals remain strong with high ROCE, ROE, and low leverage, stretched valuations and weak technical signals limit immediate upside. Traders may consider entry near ₹5,850–₹6,000 with exit targets around ₹6,250–₹6,450. Sustained reversal requires RSI recovery above 50 and price stability above 50 DMA.