POWERGRID - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.4

📊 Technical Analysis

• Chart Patterns: Stock is trading near its 52-week low (247 ₹), showing strong support but heavy correction from highs.
• Moving Averages: Current price (264 ₹) is below both 50 DMA (274 ₹) and 200 DMA (286 ₹), indicating bearish bias.
• RSI: At 26.9, the stock is oversold, suggesting potential rebound.
• MACD: Negative (-4.49), confirming weak momentum and bearish crossover.
• Bollinger Bands: Price is hugging the lower band, signaling oversold condition and possible mean reversion.
• Volume Trends: Current volume (1,16,22,455) is higher than 1-week average (1,00,03,537), showing strong participation near support.

📈 Momentum & Signals

• Short-term Momentum: Weak, but oversold indicators suggest potential bounce from support.
• Entry Zone: 255–265 ₹ (near strong support).
• Exit Zone: 280–300 ₹ (resistance at DMA levels).
• Trend Status: Currently consolidating near support with bearish undertone.

✅ Positive

• Fair P/E ratio (15.8) in line with industry PE (15.8).
• Strong ROE (17.1%) and decent ROCE (13.0%).
• Dividend yield of 3.39% provides steady shareholder returns.
• DII holdings increased (+0.84%), showing domestic investor confidence.

⚠️ Limitation

• Stock trading below both 50 DMA and 200 DMA.
• High debt-to-equity ratio (1.38) indicates leveraged balance sheet.
• PEG ratio of 6.38 suggests expensive valuation relative to growth.
• Quarterly profit variation shows decline (-4.21%).

📉 Company Negative News

• Quarterly PAT declined from 3,653 Cr. to 3,555 Cr.
• FII holdings decreased (-0.84%), showing reduced foreign investor confidence.
• Stock has corrected from 52-week high of 326 ₹.

📈 Company Positive News

• DII holdings increased (+0.84%), showing domestic support.
• Strong fundamentals with consistent profitability and high dividend yield.
• Stock trading near long-term support levels, offering accumulation opportunity.

🏭 Industry

• Industry PE is 15.8, in line with POWERGRID’s PE of 15.8, suggesting fair valuation.
• Power sector growth supported by infrastructure investments and government initiatives in transmission.

📝 Conclusion

• POWERGRID is technically weak but oversold, hinting at possible rebound from support.
• Best strategy: Accumulate near 255–265 ₹ and book profits around 280–300 ₹.
• Overall trend: Consolidation with bearish bias, awaiting reversal signals.