POLYCAB - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 19 Sept 25, 2:16 pm

Technical Rating: 4.5

Here’s a detailed technical analysis of Polycab India Ltd (POLYCAB)

📊 Trend Overview

Current Trend: The stock is in a strong uptrend, trading well above both its 50-DMA (₹6,982) and 200-DMA (₹6,432), confirming bullish momentum.

52-Week Positioning: At 94.8% of its 52-week range (₹4,555 – ₹7,607), the stock is near its all-time high, indicating strength and sustained buying interest.

📈 Momentum Indicators

RSI (68.8): Approaching overbought territory. While this confirms bullish momentum, it also suggests caution for short-term traders.

MACD (113): Strong positive divergence. Reinforces bullish sentiment with no signs of reversal.

Volume: Current volume (1.89L) is slightly below the 1-week average (2.15L), indicating steady participation. No signs of distribution yet.

📉 Chart Patterns & Moving Averages

Price Action: The stock has formed a breakout pattern above ₹7,400, with higher highs and higher lows. Trendline support is intact, and momentum is accelerating.

Support Levels

₹7,000–₹7,050 – near 50-DMA and previous breakout zone

₹6,800 – psychological support and trendline base

Resistance Levels

₹7,607 – 52-week high and immediate resistance

₹7,800–₹8,000 – projected extension zone if breakout sustains

📌 Bollinger Bands

Price is hugging the upper band, indicating strong momentum. However, a short-term pullback toward the middle band (~₹7,200) is possible before continuation.

🎯 Entry & Exit Zones

Action Price Zone (₹) Rationale

Entry 7,000–7,200 Near support and breakout retest zone

Exit (Short) 7,600–7,650 Resistance zone, potential profit booking

Exit (Long) 7,800–8,000 If breakout sustains above ₹7,650

🔍 Market Behavior

Trending: Yes, strong bullish trend confirmed by MACD, RSI, and price action.

Consolidating: No, price is expanding with momentum.

Reversing: Not currently. Indicators suggest continuation unless RSI crosses into extreme overbought and volume fades.

🧠 Summary

POLYCAB is technically robust, riding a strong uptrend with price action above key moving averages and bullish indicators. RSI and MACD confirm momentum, and volume trends are stable. Traders may consider accumulating near ₹7,000–₹7,200 and watch for breakout above ₹7,650 for targets toward ₹8,000.

Let me know if you’d like to explore sector-wide momentum plays or breakout candidates in the electricals and infrastructure space.

Edit in a page