POWERINDIA - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.8

📉 POWERINDIA is currently consolidating with weakening short-term momentum but strong long-term trend support.

📊 Technical Analysis

• Trend Status: Consolidating — price is range-bound below 50-DMA and showing signs of short-term weakness.
• Moving Averages: Price ₹17,937 is below 50-DMA (₹18,272) but above 200-DMA (₹16,792), indicating long-term bullish bias but short-term pressure.
• RSI (48.8): Neutral zone, suggesting indecision and lack of strong momentum.
• MACD (-351): Bearish crossover, confirming short-term downtrend.
• Bollinger Bands: Price near mid-band, indicating consolidation with no breakout signal.
• Volume: Current volume (1.06L) slightly below weekly average (1.11L), showing reduced participation.

🎯 Entry & Exit Zones

• Support Levels: ₹17,600, ₹16,800 (200-DMA)
• Resistance Levels: ₹18,272 (50-DMA), ₹18,800, ₹19,500
• Optimal Entry: ₹17,600–₹17,800 (near support)
• Exit Target: ₹18,800–₹19,500 (near resistance)

✅ Positive

• Strong ROCE (19.4%) and ROE (13.8%) reflect efficient capital usage.
• Low debt-to-equity ratio (0.02) indicates financial prudence.
• EPS of ₹116 and significant quarterly profit growth (1,163%) highlight earnings strength.
• FII holdings increased by 2.48%, showing foreign investor confidence.

⚠️ Limitation

• High P/E (158) and PEG (5.50) suggest overvaluation relative to growth.
• MACD and RSI show weakening momentum, limiting short-term upside.
• Dividend yield is minimal (0.03%), reducing passive income appeal.

📉 Company Negative News

• Quarterly PAT declined from ₹184 Cr to ₹132 Cr, indicating margin pressure.
• DII holdings dropped by 2.35%, reflecting domestic caution.

📈 Company Positive News

• Stock has risen 70.4% from its 52-week low, indicating strong long-term trend.
• Strong foreign investor interest and consistent earnings growth.

🏭 Industry

• Power and automation sector is gaining traction with infrastructure and electrification demand.
• Industry P/E (51.6) is significantly lower than POWERINDIA’s, suggesting premium valuation.

🧾 Conclusion

• POWERINDIA is consolidating with short-term bearish signals but strong long-term fundamentals.
• Entry near ₹17,600–₹17,800 could offer value with targets around ₹18,800–₹19,500.
• Investors should monitor valuation and earnings trajectory before aggressive positioning.