REDINGTON - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.8

📊 Technical Analysis Summary

• Trend Status: Reversing from uptrend
• Current Price: ₹254
• RSI (39.0): Weak — approaching oversold zone
• MACD (-3.05): Bearish crossover — downward momentum
• Volume: Above average (21.3L vs 16.9L) — active trading despite weakness
• DMA 50/200: Price below 50 DMA (₹267) and near 200 DMA (₹255) — trend weakening
• Bollinger Bands: Price near lower band — support likely near ₹245

📈 Entry & Exit Zones

• Support Levels: ₹245 / ₹230 / ₹215
• Resistance Levels: ₹267 / ₹280 / ₹300
• Optimal Entry: ₹245–₹255 (on dip near support)
• Exit Target: ₹280–₹300 (if momentum recovers)

✅ Positive

• ROCE (32.6%) and ROE (35.0%) — excellent operational efficiency
• Low P/E (13.3) and PEG (0.86) — undervalued relative to growth
• Dividend yield of 2.68% — attractive for income investors
• EPS of ₹19.0 — strong earnings base

⚠️ Limitation

• MACD and RSI show bearish momentum
• Price below 50 DMA and near 200 DMA — trend reversal risk
• FII holding declined by 0.77% — foreign investor caution

📉 Company Negative News

• Sequential PAT decline from ₹209 Cr to ₹200 Cr — mild earnings dip

📈 Company Positive News

• DII holding increased by 0.32% — domestic investor confidence
• Qtr Profit Var up 28.6% — healthy YoY growth
• 52-week performance up 48.7% — strong long-term trend

🏢 Industry

• REDINGTON operates in IT distribution and supply chain — cyclical and tech-driven sector
• Industry P/E is 42.4 — REDINGTON trades at a significant discount
• Sector benefits from digital transformation and enterprise tech demand

🧾 Conclusion

• REDINGTON is currently reversing with weak technical indicators but strong fundamentals
• Entry near ₹245 may offer upside toward ₹300 if sentiment improves
• Valuation and efficiency metrics support medium-term accumulation despite short-term technical weakness