POLYCAB - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 4.5

📊 Technical Analysis Summary

• Trend Status: Trending upward
• Current Price: ₹7,705
• RSI (61.9): Bullish zone — strong momentum
• MACD (83.4): Strong bullish crossover — upward momentum confirmed
• Volume: Slightly below average (3.55L vs 4.10L) — healthy but cooling
• DMA 50/200: Price above both (₹7,384 & ₹6,708) — bullish confirmation
• Bollinger Bands: Price near upper band — resistance likely near ₹7,900

📈 Entry & Exit Zones

• Support Levels: ₹7,500 / ₹7,380 / ₹7,200
• Resistance Levels: ₹7,900 / ₹8,100 / ₹8,300
• Optimal Entry: ₹7,500–₹7,600 (on minor pullback)
• Exit Target: ₹8,100–₹8,300 (if momentum sustains)

✅ Positive

• Strong MACD and RSI — bullish technical indicators
• Price above key moving averages — trend confirmation
• Low debt-to-equity ratio (0.01) — excellent financial health
• ROCE (29.7%) and ROE (21.4%) — strong operational efficiency

⚠️ Limitation

• High P/E (47.9) — premium valuation vs industry
• Volume slightly below average — momentum may be cooling
• Dividend yield is modest (0.45%)

📉 Company Negative News

• No major negative news — valuation premium may be a concern

📈 Company Positive News

• FII holding increased by 2.51% — strong foreign investor confidence
• Quarterly PAT rose from ₹568 Cr to ₹675 Cr — 56.7% growth

🏢 Industry

• POLYCAB operates in electricals and cables — infrastructure-driven sector
• Industry P/E is 24.5 — POLYCAB trades at a premium
• Sector benefits from urbanization, electrification, and government infrastructure push

🧾 Conclusion

• POLYCAB is currently trending upward with strong technical and fundamental signals
• Entry near ₹7,500 may offer upside toward ₹8,300 if momentum continues
• Valuation is rich — suitable for momentum traders and long-term investors with growth appetite