PERSISTENT - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.1

📊 Technical Analysis

• Chart Patterns: Stock is trading near resistance (6,789 ₹) after a strong rally, showing strength but facing overhead supply.
• Moving Averages: Current price (6,365 ₹) is above both 50 DMA (6,060 ₹) and 200 DMA (5,659 ₹), indicating bullish bias.
• RSI: At 54.7, the stock is neutral to slightly bullish, not overbought.
• MACD: Positive (63.0), confirming bullish momentum and upward crossover.
• Bollinger Bands: Price is near upper band, suggesting strong momentum but caution for possible pullback.
• Volume Trends: Current volume (1,71,491) is lower than 1-week average (2,06,326), showing mild decline in participation.

📈 Momentum & Signals

• Short-term Momentum: Strong bullish signals from MACD and price above DMA levels.
• Entry Zone: 6,100–6,250 ₹ (near 50 DMA support).
• Exit Zone: 6,700–6,800 ₹ (resistance near recent highs).
• Trend Status: Currently trending upward with bullish bias.

✅ Positive

• Strong ROCE (28.4%) and ROE (20.9%).
• Debt-free structure (Debt-to-equity: 0.05).
• Quarterly PAT surged from 374 Cr. to 465 Cr. (+62.5%).
• DII holdings increased (+2.83%), showing domestic investor confidence.

⚠️ Limitation

• High P/E ratio (68.8) compared to industry PE (26.4), indicating premium valuation.
• PEG ratio of 3.53 suggests expensive valuation relative to growth.
• FII holdings decreased (-2.95%).
• Volume participation is slightly declining compared to average.

📉 Company Negative News

• Stock has corrected slightly from 52-week high of 6,789 ₹.
• Valuation remains stretched compared to industry peers.

📈 Company Positive News

• Quarterly profits improved strongly (+62.5%).
• DII holdings increased, showing domestic support.
• Stock trading above both 50 DMA and 200 DMA, confirming bullish trend.

🏭 Industry

• Industry PE is 26.4, much lower than PERSISTENT’s PE of 68.8, highlighting premium valuation.
• IT services sector growth supported by digital transformation and strong demand for cloud/software solutions.

📝 Conclusion

• PERSISTENT is technically strong with bullish momentum but trading at premium valuations.
• Best strategy: Accumulate near 6,100–6,250 ₹ and book profits around 6,700–6,800 ₹.
• Overall trend: Uptrend with bullish bias, though caution advised due to stretched valuations.