PETRONET - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.7

📊 Technical Analysis

• Chart Patterns: Stock is trading close to support (264 ₹) with resistance around 288 ₹ (200 DMA).
• Moving Averages: Current price (274 ₹) is near 50 DMA (275 ₹) and below 200 DMA (288 ₹), indicating mild bearish bias.
• RSI: At 44.7, the stock is neutral — neither overbought nor oversold.
• MACD: Slightly negative (-2.23), suggesting weak momentum and consolidation.
• Bollinger Bands: Price is near mid-band, pointing to sideways movement.
• Volume Trends: Current volume (10,30,983) is lower than 1-week average (14,67,172), showing reduced participation.

📈 Momentum & Signals

• Short-term Momentum: Neutral to mildly bearish due to weak MACD and price below 200 DMA.
• Entry Zone: 265–272 ₹ (near support).
• Exit Zone: 285–300 ₹ (resistance at DMA levels).
• Trend Status: Currently consolidating between support and resistance zones.

✅ Positive

• Low P/E ratio (11.4) compared to industry PE (20.4), suggesting undervaluation.
• Strong ROCE (26.2%) and ROE (21.4%).
• Healthy dividend yield of 3.70%.
• Debt-to-equity ratio of 0.12 shows low leverage.

⚠️ Limitation

• Stock trading below 200 DMA, showing weak long-term momentum.
• PEG ratio of 2.21 indicates expensive valuation relative to growth.
• Volume participation is declining compared to average.

📉 Company Negative News

• Quarterly PAT declined from 851 Cr. to 806 Cr. (-4.94%).
• FII holdings decreased (-1.01%), showing reduced foreign investor confidence.

📈 Company Positive News

• DII holdings increased (+0.79%), showing domestic support.
• Strong fundamentals with consistent profitability and high returns ratios.
• Dividend yield provides steady shareholder returns.

🏭 Industry

• Industry PE is 20.4, higher than PETRONET’s PE of 11.4, highlighting undervaluation.
• Energy sector growth supported by rising demand for LNG and infrastructure expansion.

📝 Conclusion

• PETRONET is fundamentally strong but technically consolidating with mild bearish signals.
• Support levels (264–272 ₹) provide accumulation opportunity, while resistance lies near 285–300 ₹.
• Best strategy: Accumulate near support and book profits around resistance.
• Overall trend: Consolidation with cautious outlook due to weak momentum but strong fundamentals.