RAINBOW - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | RAINBOW | Market Cap | 11,357 Cr. | Current Price | 1,119 ₹ | High / Low | 1,646 ₹ |
| Stock P/E | 46.3 | Book Value | 156 ₹ | Dividend Yield | 0.27 % | ROCE | 18.3 % |
| ROE | 16.7 % | Face Value | 10.0 ₹ | DMA 50 | 1,207 ₹ | DMA 200 | 1,315 ₹ |
| Chg in FII Hold | -2.61 % | Chg in DII Hold | 2.03 % | PAT Qtr | 65.8 Cr. | PAT Prev Qtr | 73.2 Cr. |
| RSI | 35.5 | MACD | -18.8 | Volume | 3,33,693 | Avg Vol 1Wk | 1,58,974 |
| Low price | 1,009 ₹ | High price | 1,646 ₹ | PEG Ratio | 2.60 | Debt to equity | 0.46 |
| 52w Index | 17.3 % | Qtr Profit Var | -1.73 % | EPS | 24.2 ₹ | Industry PE | 43.5 |
📊 Chart Analysis: RAINBOW is trading below both its 50 DMA (1,207 ₹) and 200 DMA (1,315 ₹), indicating weakness. RSI at 35.5 suggests the stock is nearing oversold territory, while MACD at -18.8 confirms bearish divergence. Bollinger Bands show price leaning towards the lower band, reflecting selling pressure. Current volume (3,33,693) is significantly higher than average (1,58,974), suggesting strong activity, likely driven by selling.
📈 Momentum Signals: Short-term momentum is weak with bearish signals. RSI near 30–35 could trigger a rebound, but MACD remains negative, limiting upside potential.
💰 Entry Zone: 1,080 ₹ – 1,120 ₹ (near support levels).
📉 Exit Zone: 1,200 ₹ – 1,230 ₹ (resistance near 50 DMA).
🔎 Trend Status: The stock is consolidating with bearish bias, showing potential reversal only if price sustains above 1,207 ₹ with stronger volume.
Positive
- Strong ROCE (18.3%) and ROE (16.7%) indicate efficient capital usage.
- DII holdings increased (+2.03%), showing domestic institutional support.
- EPS at 24.2 ₹ reflects consistent profitability.
Limitation
- High valuation with P/E of 46.3 compared to industry PE of 43.5.
- Dividend yield is low (0.27%), limiting income potential.
- Trading below both 50 DMA and 200 DMA, signaling weakness.
Company Negative News
- FII holdings declined (-2.61%), showing reduced foreign investor confidence.
- Quarterly PAT declined (65.8 Cr vs 73.2 Cr), reflecting earnings pressure.
Company Positive News
- EPS remains strong at 24.2 ₹, supporting valuation.
- Sector demand outlook remains favorable, supporting long-term growth.
Industry
- Industry PE at 43.5 indicates moderate valuation compared to RAINBOW’s higher P/E.
- Healthcare sector outlook remains stable with consistent demand.
Conclusion
⚠️ RAINBOW is currently in a bearish consolidation phase. Entry is favorable near 1,080–1,120 ₹ support with a strict stop-loss. Exit should be considered near 1,200–1,230 ₹ resistance. Long-term investors may wait for confirmation of reversal above 1,207 ₹ with stronger volume before adding positions.