RECLTD - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.7

📊 Chart Patterns: RECLTD is trading below both its 50 DMA (358 ₹) and 200 DMA (392 ₹), indicating a bearish setup. Current price (339 ₹) is close to its 52-week low (331 ₹), showing strong downward pressure.

📈 Moving Averages: Price < 50 DMA and < 200 DMA → bearish alignment, signaling weakness in both short and long-term trends.

📉 RSI: 32.2 → oversold territory, suggesting potential rebound if support holds.

📉 MACD: -7.19 → bearish crossover, confirming negative momentum.

📊 Bollinger Bands: Price near lower band, indicating oversold conditions but also risk of further downside.

📊 Volume Trends: Current volume (71,30,988) is higher than 1-week average (61,79,036) → selling pressure is strong, showing distribution rather than accumulation.

📍 Support Levels: 331 ₹ (52-week low), 325 ₹, and 310 ₹.

📍 Resistance Levels: 358 ₹ (DMA 50), 392 ₹ (DMA 200), and 410 ₹.

🔎 Trend: The stock is reversing downward with bearish signals. A breakdown below 331 ₹ could trigger further decline, while a rebound above 358 ₹ may signal short-term recovery.

Positive

• 📈 Strong EPS of 65.1 ₹ supports earnings strength.
• 📊 Dividend yield of 5.28% provides attractive income for investors.
• 📊 ROE at 21.5% indicates strong shareholder returns.
• 📊 PEG ratio of 0.32 suggests undervaluation relative to growth.

Limitation

• ⚠️ Price trading below both 50 DMA and 200 DMA → bearish technical setup.
• ⚠️ ROCE at 9.92% is modest compared to ROE, showing limited efficiency.
• ⚠️ High debt-to-equity ratio (6.24) indicates significant leverage risk.
• ⚠️ RSI oversold but momentum remains weak, limiting upside potential.

Company Negative News

• 📉 FII holdings declined (-1.19%), showing reduced foreign investor confidence.
• 📉 PAT slightly decreased from 4,451 Cr. to 4,426 Cr., showing stagnation.
• 📉 Stock near 52-week low (3.79% of range), reflecting weak sentiment.

Company Positive News

• 📈 Quarterly profit variation (+10.5%) shows resilience despite pressure.
• 📊 DII holdings increased (+0.35%), showing domestic institutional support.
• 📊 Strong dividend yield and earnings power provide long-term value.

Industry

• ⚡ Power finance sector PE at 21.2, much higher than RECLTD’s PE (5.24), suggesting undervaluation.
• 📊 Industry supported by government infrastructure and energy financing initiatives.

Conclusion

🔎 RECLTD is showing bearish reversal signals with price below key moving averages, weak RSI, and negative MACD. Optimal entry zone lies near 330–335 ₹ if support holds, while exit/resistance zone is 358–392 ₹. Long-term investors may find value due to strong dividend yield and low P/E, but short-term traders should remain cautious until a clear breakout above 358 ₹ confirms recovery momentum.