POWERINDIA - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.8

📊 Chart Patterns: Power India is trading below its 50 DMA (19,873 ₹) but above its 200 DMA (17,881 ₹), showing short-term weakness within a long-term uptrend. Current price (18,590 ₹) is near support at 18,400–18,600 ₹, with resistance around 19,800–20,000 ₹.

📉 Moving Averages: Price below 50 DMA indicates short-term bearishness, but above 200 DMA confirms medium-term strength.

📉 RSI: At 34.2, RSI is oversold, suggesting potential rebound opportunities.

📉 MACD: Strongly negative at -429, confirming bearish momentum and signaling caution for traders.

📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible short-term bounce.

📈 Volume Trends: Current volume (1,65,741) is higher than average weekly volume (87,118), showing increased participation despite weakness.

📌 Short-term Momentum Signals: Weak momentum with oversold RSI. A bounce is possible if price holds above 18,400 ₹. Breakout above 19,800 ₹ could trigger recovery toward 20,500 ₹.

🎯 Optimal Entry Zone: 18,400–18,600 ₹ (near support).

🎯 Optimal Exit Zone: 19,800–20,000 ₹ (near resistance).

📉 Trend Status: The stock is consolidating with a bearish bias, awaiting reversal signals.

Positive

• Strong quarterly PAT growth (264 Cr. vs 132 Cr.), up 406%.
• EPS of 163 ₹ highlights robust earnings power.
• Low debt-to-equity ratio (0.02) ensures financial stability.
• FII holding increased by 2.48%, showing foreign investor confidence.

Limitation

• High P/E (116) compared to industry PE (43.9) suggests overvaluation.
• PEG ratio of 4.01 indicates limited growth relative to valuation.
• Dividend yield of 0.03% is negligible, limiting passive income appeal.

Company Negative News

• DII holding decreased by -2.35%, showing reduced domestic institutional support.

Company Positive News

• Quarterly PAT growth highlights strong operational performance.
• FII inflows reflect global investor confidence in the company.

Industry

• Industry PE at 43.9 is significantly lower than Power India’s PE (116), highlighting overvaluation risk.
• Power and energy sector outlook remains strong with infrastructure expansion and renewable energy demand.

Conclusion

⚖️ Power India is fundamentally strong with robust profit growth, low debt, and rising FII interest. However, technically the stock is consolidating with bearish signals from RSI and MACD. Entry is favorable near 18,400–18,600 ₹ with cautious exit around 19,800–20,000 ₹. Long-term investors may hold for sector strength, while short-term traders should wait for confirmation above 19,800 ₹.