PREMIERENE - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.7

📊 Technical Analysis

• Chart Patterns: Stock is trading near support (880–900 ₹) with resistance around 978–1,011 ₹ (DMA levels).
• Moving Averages: Current price (890 ₹) is below both 50 DMA (978 ₹) and 200 DMA (1,011 ₹), indicating bearish bias.
• RSI: At 36.8, the stock is weak and close to oversold territory, suggesting potential rebound.
• MACD: Negative (-30.1), confirming bearish momentum and weak crossover.
• Bollinger Bands: Price is near lower band, signaling oversold condition and possible mean reversion.
• Volume Trends: Current volume (7,21,799) is lower than 1-week average (8,53,362), showing reduced participation.

📈 Momentum & Signals

• Short-term Momentum: Weak, but oversold indicators suggest potential bounce from support.
• Entry Zone: 870–900 ₹ (near support).
• Exit Zone: 970–1,020 ₹ (resistance at DMA levels).
• Trend Status: Currently consolidating near support with bearish undertone.

✅ Positive

• Quarterly PAT surged from 23.5 Cr. to 55.1 Cr. (+245%).
• EPS of 3.93 ₹ shows earnings improvement.
• DII holdings increased (+0.30%), showing domestic investor confidence.
• Debt-to-equity ratio of 0.01 indicates virtually debt-free balance sheet.

⚠️ Limitation

• Stock trading below both 50 DMA and 200 DMA.
• Extremely high P/E ratio (227) compared to industry PE (30.6), indicating overvaluation.
• Low ROCE (12.4%) and ROE (9.49%) reflect weak efficiency.
• Volume participation is declining compared to average.

📉 Company Negative News

• FII holdings decreased (-0.15%), showing reduced foreign investor confidence.
• Stock has corrected sharply from 52-week high of 1,384 ₹.

📈 Company Positive News

• Quarterly profits improved significantly (+245%).
• DII holdings increased, showing domestic support.
• Strong 52-week performance (+21.4%).

🏭 Industry

• Industry PE is 30.6, much lower than PREMIERENE’s PE of 227, highlighting premium valuation.
• Media and entertainment sector growth supported by rising demand for digital content and multiplex expansion.

📝 Conclusion

• PREMIERENE is technically consolidating near support with weak momentum indicators.
• Oversold signals (RSI, Bollinger Bands) hint at possible rebound from support.
• Best strategy: Accumulate near 870–900 ₹ and book profits around 970–1,020 ₹.
• Overall trend: Consolidation with bearish bias, awaiting reversal signals.