PETRONET - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | PETRONET | Market Cap | 42,239 Cr. | Current Price | 281 ₹ | High / Low | 326 ₹ |
| Stock P/E | 11.8 | Book Value | 137 ₹ | Dividend Yield | 3.56 % | ROCE | 26.2 % |
| ROE | 21.4 % | Face Value | 10.0 ₹ | DMA 50 | 281 ₹ | DMA 200 | 287 ₹ |
| Chg in FII Hold | -1.73 % | Chg in DII Hold | 1.80 % | PAT Qtr | 806 Cr. | PAT Prev Qtr | 851 Cr. |
| RSI | 48.7 | MACD | 1.53 | Volume | 5,67,303 | Avg Vol 1Wk | 25,77,515 |
| Low price | 264 ₹ | High price | 326 ₹ | PEG Ratio | 2.28 | Debt to equity | 0.12 |
| 52w Index | 28.2 % | Qtr Profit Var | -4.94 % | EPS | 24.0 ₹ | Industry PE | 19.8 |
📊 Chart & Trend Analysis: PETRONET is trading at ₹281, exactly at its 50 DMA (₹281) and slightly below its 200 DMA (₹287), reflecting a neutral to mildly bearish setup. RSI at 48.7 indicates balanced momentum, while MACD (1.53) shows a mild bullish crossover. Bollinger Bands suggest price consolidation near the mid-band. Current volume (5,67,303) is significantly lower than the 1-week average (25,77,515), indicating reduced participation.
📈 Momentum Signals: Short-term momentum is neutral, with RSI near 50 and MACD positive. Sustained price action above ₹290 could strengthen bullish bias, while a drop below ₹275 may trigger weakness.
💡 Entry Zone: ₹270–₹280 (support near 52-week low and DMA levels)
🚪 Exit Zone: ₹310–₹325 (resistance near 52-week high)
🔎 Trend Status: The stock is consolidating, with mild bullish bias supported by MACD crossover but limited by weak volume.
Positive
- Strong ROCE (26.2%) and ROE (21.4%) indicate efficient operations.
- Dividend yield of 3.56% provides attractive shareholder returns.
- EPS at ₹24.0 reflects solid earnings capacity.
- Debt-to-equity ratio at 0.12 shows low leverage.
- Increase in DII holding (+1.80%) signals domestic institutional support.
Limitation
- Price trading below 200 DMA indicates weak medium-term technical strength.
- Stock P/E at 11.8 is lower than industry average (19.8), suggesting cautious market sentiment despite strong fundamentals.
- PEG ratio at 2.28 suggests expensive growth-adjusted valuation.
- Volume participation is significantly lower than average, limiting momentum strength.
Company Negative News
- Decline in FII holding (-1.73%) signals reduced foreign investor confidence.
- Quarterly PAT declined to ₹806 Cr. vs ₹851 Cr., showing -4.94% variation.
Company Positive News
- Strong efficiency metrics (ROCE & ROE) highlight operational excellence.
- Increase in DII holding reflects domestic institutional optimism.
Industry
- Industry PE at 19.8 is higher than PETRONET’s, suggesting undervaluation relative to peers.
- Energy and gas sector demand remains structurally strong, supported by industrial and consumer consumption trends.
Conclusion
⚖️ PETRONET is consolidating with mild bullish bias, trading near its 50 DMA and slightly below 200 DMA. While fundamentals remain strong with high efficiency, dividend yield, and low leverage, weak volume and declining profits limit upside. Traders may consider entry near ₹270–₹280 with exit targets around ₹310–₹325. Sustained reversal requires RSI recovery above 50 and price stability above 200 DMA.