POWERGRID - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | POWERGRID | Market Cap | 2,73,718 Cr. | Current Price | 294 ₹ | High / Low | 325 ₹ |
| Stock P/E | 17.2 | Book Value | 107 ₹ | Dividend Yield | 3.06 % | ROCE | 10.2 % |
| ROE | 16.6 % | Face Value | 10.0 ₹ | DMA 50 | 303 ₹ | DMA 200 | 292 ₹ |
| Chg in FII Hold | 0.29 % | Chg in DII Hold | -0.14 % | PAT Qtr | 4,553 Cr. | PAT Prev Qtr | 4,160 Cr. |
| RSI | 34.6 | MACD | -2.97 | Volume | 1,55,56,044 | Avg Vol 1Wk | 1,22,70,729 |
| Low price | 250 ₹ | High price | 325 ₹ | PEG Ratio | -21.2 | Debt to equity | 1.48 |
| 52w Index | 59.2 % | Qtr Profit Var | 5.00 % | EPS | 17.1 ₹ | Industry PE | 17.2 |
📈 Trend Analysis: POWERGRID is trading at ₹294, below the 50 DMA (₹303) but slightly above the 200 DMA (₹292). This indicates short-term weakness but medium-term support remains intact. The stock has corrected from its 52-week high of ₹325 and is consolidating near support levels.
📊 RSI: At 34.6, RSI suggests the stock is approaching oversold territory, which may limit further downside and hint at a potential rebound.
📉 MACD: Negative MACD (-2.97) confirms bearish momentum, aligning with the weak price action below the 50 DMA.
📌 Bollinger Bands: Price is near the lower band, signaling possible consolidation or a short-term bounce if support holds.
🔎 Volume Trends: Current volume (1,55,56,044) is higher than the 1-week average (1,22,70,729), showing active participation during the decline, which reflects selling pressure.
💡 Momentum Signals: Short-term momentum is weak. Optimal entry zone lies near ₹285–₹290 support levels. Exit/resistance zone is around ₹310–₹315, where selling pressure may emerge.
📌 Market Phase: The stock is consolidating with a bearish bias, attempting to stabilize near support after recent declines.
Positive
- 🚀 Quarterly PAT growth (₹4,553 Cr vs ₹4,160 Cr), up 5%.
- 💰 Attractive dividend yield of 3.06% provides income stability.
- 📈 ROE at 16.6% indicates decent shareholder returns.
- 🌍 FII holdings increased by 0.29%, showing foreign investor confidence.
Limitation
- ⚠️ Current price below 50 DMA, signaling short-term weakness.
- 📉 ROCE at 10.2% is modest compared to peers.
- 🔎 PEG ratio (-21.2) reflects valuation concerns and growth inconsistency.
Company Negative News
- 📉 DII holdings decreased by 0.14%, showing reduced domestic institutional interest.
- ⚠️ Debt-to-equity ratio at 1.48, indicating moderate leverage risk.
Company Positive News
- 📈 Quarterly PAT growth of 5% highlights operational stability.
- 💡 EPS of ₹17.1 supports consistent earnings visibility.
- 🔒 Dividend yield of 3.06% adds investor appeal.
Industry
- 🏭 Industry PE at 17.2, equal to POWERGRID’s, suggesting fair valuation.
- 📊 Sector benefits from infrastructure and power transmission demand.
Conclusion
⚖️ POWERGRID is consolidating with short-term weakness but stable fundamentals. Dividend yield and fair valuation make it appealing for long-term investors, though near-term momentum remains weak. Strategy: consider entry near ₹285–₹290 support zones and book profits around ₹310–₹315 resistance. The stock is consolidating with potential for reversal if RSI improves and volumes stabilize.