RAINBOW - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.1
| Stock Code | RAINBOW | Market Cap | 11,631 Cr. | Current Price | 1,144 ₹ | High / Low | 1,646 ₹ |
| Stock P/E | 47.4 | Book Value | 156 ₹ | Dividend Yield | 0.26 % | ROCE | 18.3 % |
| ROE | 16.7 % | Face Value | 10.0 ₹ | DMA 50 | 1,282 ₹ | DMA 200 | 1,367 ₹ |
| Chg in FII Hold | -2.61 % | Chg in DII Hold | 2.03 % | PAT Qtr | 65.8 Cr. | PAT Prev Qtr | 73.2 Cr. |
| RSI | 20.6 | MACD | -44.0 | Volume | 1,29,639 | Avg Vol 1Wk | 1,63,715 |
| Low price | 1,123 ₹ | High price | 1,646 ₹ | PEG Ratio | 2.66 | Debt to equity | 0.46 |
| 52w Index | 4.09 % | Qtr Profit Var | -1.73 % | EPS | 24.2 ₹ | Industry PE | 45.2 |
📊 Chart & Trend Analysis: RAINBOW is trading at 1,144 ₹, well below its 50 DMA (1,282 ₹) and 200 DMA (1,367 ₹), indicating strong bearish pressure. RSI at 20.6 suggests the stock is deeply oversold, while MACD at -44.0 confirms bearish momentum. Bollinger Bands show price hugging the lower band, signaling weakness but also potential for a technical rebound near support at 1,120–1,140 ₹.
📈 Momentum Signals: Current volume (1.29 lakh) is lower than the 1-week average (1.63 lakh), reflecting reduced participation. Oversold RSI may trigger a short-term bounce, but sustained recovery requires stronger volume and price action above 1,282–1,367 ₹.
🎯 Entry Zone: 1,120–1,150 ₹ (near support and oversold RSI)
🚪 Exit Zone: 1,280–1,350 ₹ (resistance near 50 DMA and 200 DMA)
📌 Trend Status: Bearish trend with consolidation signs. A reversal is possible if RSI rebounds and price sustains above 1,282 ₹ with volume confirmation.
Positive
- Strong ROCE at 18.3% and ROE at 16.7% indicate efficient capital use.
- DII holdings increased (+2.03%), showing domestic investor confidence.
- EPS of 24.2 ₹ reflects profitability despite recent weakness.
- Debt-to-equity ratio of 0.46 indicates moderate leverage and financial stability.
Limitation
- Stock trading below both 50 DMA and 200 DMA, signaling technical weakness.
- High P/E of 47.4 compared to industry PE of 45.2, making valuation expensive.
- PEG ratio of 2.66 suggests overvaluation relative to growth.
- Low 52-week index at 4.09% shows poor relative performance.
Company Negative News
- Quarterly PAT declined from 73.2 Cr. to 65.8 Cr. (-1.73%).
- FII holdings reduced (-2.61%), showing foreign investor caution.
Company Positive News
- DII inflows (+2.03%) highlight domestic support.
- Strong market cap of 11,631 Cr. reflects industry presence.
Industry
- Industry PE at 45.2 is slightly lower than RAINBOW’s 47.4, suggesting sector peers are more reasonably valued.
- Healthcare and hospital sector benefits from rising demand for medical services and long-term structural growth.
Conclusion
⚖️ RAINBOW is in a bearish phase, trading below key moving averages with oversold RSI. Entry near 1,120–1,150 ₹ offers tactical opportunity, while exits around 1,280–1,350 ₹ align with resistance. Strong fundamentals like ROCE, ROE, and domestic inflows support long-term stability, but expensive valuation and weak technicals warrant cautious positioning until a breakout above 1,282 ₹ confirms reversal.