REDINGTON - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | REDINGTON | Market Cap | 20,811 Cr. | Current Price | 266 ₹ | High / Low | 335 ₹ |
| Stock P/E | 14.8 | Book Value | 61.3 ₹ | Dividend Yield | 2.55 % | ROCE | 32.6 % |
| ROE | 35.0 % | Face Value | 2.00 ₹ | DMA 50 | 271 ₹ | DMA 200 | 264 ₹ |
| Chg in FII Hold | 0.13 % | Chg in DII Hold | 0.31 % | PAT Qtr | 532 Cr. | PAT Prev Qtr | 200 Cr. |
| RSI | 48.8 | MACD | -3.40 | Volume | 7,14,083 | Avg Vol 1Wk | 15,52,275 |
| Low price | 177 ₹ | High price | 335 ₹ | PEG Ratio | 0.96 | Debt to equity | 0.30 |
| 52w Index | 56.7 % | Qtr Profit Var | -14.0 % | EPS | 17.9 ₹ | Industry PE | 32.3 |
📊 Chart & Trend Analysis: REDINGTON is trading at 266 ₹, slightly below its 50 DMA (271 ₹) but above its 200 DMA (264 ₹), indicating short-term weakness but medium-term support. RSI at 48.8 suggests neutral momentum, while MACD at -3.40 confirms mild bearish crossover. Bollinger Bands show price stabilizing near the mid-band, signaling consolidation with potential upside if volume improves.
📈 Momentum Signals: Current volume (7.1 lakh) is lower than the 1-week average (15.5 lakh), reflecting reduced participation. RSI near neutral levels suggests balanced momentum. Sustained price action above 271–280 ₹ could trigger a breakout towards 300–320 ₹.
🎯 Entry Zone: 260–270 ₹ (near support and neutral RSI)
🚪 Exit Zone: 300–320 ₹ (resistance near upper trendline and recent highs)
📌 Trend Status: Consolidating with bullish bias. A reversal is possible if price sustains above 280 ₹ with stronger volume confirmation.
Positive
- Strong ROCE at 32.6% and ROE at 35.0% indicate excellent efficiency.
- Dividend yield of 2.55% supports income investors.
- EPS of 17.9 ₹ reflects profitability.
- FII (+0.13%) and DII (+0.31%) holdings increased, showing institutional support.
- PEG ratio of 0.96 suggests fair valuation relative to growth.
Limitation
- Stock trading below 50 DMA, signaling short-term weakness.
- P/E of 14.8 is lower than industry PE of 32.3, but valuation may reflect growth concerns.
- Volume trend declining, reducing breakout probability.
Company Negative News
- Quarterly profit variation of -14% indicates declining earnings momentum.
- MACD indicates bearish crossover, limiting immediate upside.
Company Positive News
- PAT surged to 532 Cr. from 200 Cr., showing strong sequential growth.
- Strong market cap of 20,811 Cr. reflects industry leadership.
Industry
- Industry PE at 32.3 is higher than REDINGTON’s 14.8, suggesting peers trade at richer valuations.
- IT distribution and services sector benefits from digital transformation and rising enterprise demand.
Conclusion
⚖️ REDINGTON is consolidating with bullish bias, trading near its 200 DMA support but slightly below the 50 DMA. Entry near 260–270 ₹ offers tactical opportunity, while exits around 300–320 ₹ align with resistance. Strong fundamentals like ROCE, ROE, and institutional inflows support medium-term stability, but weak technicals and declining profit momentum warrant cautious positioning until a breakout above 280 ₹ confirms reversal.