POONAWALLA - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.5

📊 Technical Analysis

• Chart Patterns: Stock is trading near support (439–450 ₹) with resistance around 467–480 ₹ (DMA levels).
• Moving Averages: Current price (448 ₹) is below 50 DMA (467 ₹) but above 200 DMA (439 ₹), showing mixed signals.
• RSI: At 39.4, the stock is weak and close to oversold territory, suggesting potential rebound.
• MACD: Negative (-9.09), confirming weak momentum and bearish crossover.
• Bollinger Bands: Price is near lower band, signaling oversold condition and possible mean reversion.
• Volume Trends: Current volume (8,59,958) is higher than 1-week average (6,68,671), showing increased activity near support.

📈 Momentum & Signals

• Short-term Momentum: Weak, but oversold indicators suggest potential bounce from support.
• Entry Zone: 440–455 ₹ (near support and 200 DMA).
• Exit Zone: 465–490 ₹ (resistance at 50 DMA and trendline).
• Trend Status: Currently consolidating near support with bearish undertone.

✅ Positive

• Quarterly PAT improved from 62.6 Cr. to 74.2 Cr. (+116% variation).
• EPS of 2.76 ₹ shows earnings recovery.
• DII holdings increased slightly (+0.02%), showing domestic support.
• Strong 52-week performance (+59.7%).

⚠️ Limitation

• Stock trading below 50 DMA, showing weak short-term momentum.
• Extremely high P/E ratio (167) compared to industry PE (21.2), indicating overvaluation.
• Negative ROE (-1.29%) and low ROCE (4.77%).
• High debt-to-equity ratio (3.66) indicates leveraged balance sheet.

📉 Company Negative News

• FII holdings decreased (-0.20%), showing reduced foreign investor confidence.
• Stock has corrected from 52-week high of 570 ₹.

📈 Company Positive News

• Quarterly profits improved significantly (+116%).
• DII holdings increased marginally, showing domestic support.
• Stock trading above 200 DMA, indicating long-term resilience.

🏭 Industry

• Industry PE is 21.2, much lower than POONAWALLA’s PE of 167, highlighting premium valuation.
• Financial services sector growth supported by credit demand and diversified exposure.

📝 Conclusion

• POONAWALLA is technically consolidating with weak short-term momentum but showing long-term resilience above 200 DMA.
• Support levels (440–455 ₹) provide accumulation opportunity, while resistance lies near 465–490 ₹.
• Best strategy: Accumulate near support and book profits around resistance.
• Overall trend: Consolidation with bearish bias, awaiting reversal signals.