POLYCAB - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | POLYCAB | Market Cap | 1,02,671 Cr. | Current Price | 6,819 ₹ | High / Low | 7,948 ₹ |
| Stock P/E | 39.6 | Book Value | 697 ₹ | Dividend Yield | 0.51 % | ROCE | 29.7 % |
| ROE | 21.4 % | Face Value | 10.0 ₹ | DMA 50 | 7,319 ₹ | DMA 200 | 7,029 ₹ |
| Chg in FII Hold | 0.86 % | Chg in DII Hold | -0.57 % | PAT Qtr | 618 Cr. | PAT Prev Qtr | 675 Cr. |
| RSI | 37.3 | MACD | -172 | Volume | 1,33,531 | Avg Vol 1Wk | 3,49,442 |
| Low price | 4,555 ₹ | High price | 7,948 ₹ | PEG Ratio | 1.22 | Debt to equity | 0.01 |
| 52w Index | 66.7 % | Qtr Profit Var | 36.4 % | EPS | 172 ₹ | Industry PE | 17.9 |
📊 Chart & Trend Analysis: POLYCAB is currently trading at 6,819 ₹, below its 50 DMA (7,319 ₹) and 200 DMA (7,029 ₹). This indicates short-term weakness but long-term support around 7,000 ₹. RSI at 37.3 suggests the stock is approaching oversold territory. MACD at -172 confirms bearish momentum. Bollinger Bands show price leaning towards the lower band, signaling potential reversal if volume strengthens.
📈 Momentum Signals: Short-term momentum is weak due to declining volume (1,33,531 vs avg 3,49,442). However, RSI near oversold levels may trigger a bounce. FII inflows (+0.86%) provide some cushion against selling pressure.
🎯 Entry Zone: 6,600–6,750 ₹ (near support and oversold RSI)
🚪 Exit Zone: 7,300–7,500 ₹ (resistance near 50 DMA and upper trendline)
📌 Trend Status: Consolidation with bearish bias, but reversal possible if RSI stabilizes and volume improves.
Positive
- Strong fundamentals: ROCE 29.7%, ROE 21.4%, Debt-to-equity 0.01.
- EPS of 172 ₹ with PEG ratio 1.22 indicates reasonable growth valuation.
- FII holdings increased, showing institutional confidence.
Limitation
- High P/E of 39.6 compared to industry PE of 17.9.
- Stock trading below both 50 DMA and 200 DMA, signaling weakness.
- Volume trend declining, reducing breakout probability.
Company Negative News
- Quarterly PAT declined from 675 Cr. to 618 Cr.
- DII holdings reduced (-0.57%), showing domestic caution.
Company Positive News
- Quarterly profit variation +36.4% YoY indicates strong growth momentum.
- Market cap above 1 lakh Cr. reflects strong industry positioning.
Industry
- Industry PE at 17.9 shows sector is relatively undervalued compared to POLYCAB.
- Electrical and cable sector benefiting from infrastructure and housing demand.
Conclusion
⚖️ POLYCAB is in consolidation with bearish bias but nearing oversold RSI levels. Entry near 6,600–6,750 ₹ offers margin of safety, while exits around 7,300–7,500 ₹ align with resistance. Long-term fundamentals remain strong, but short-term caution is advised until volume confirms reversal.