REDINGTON - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | REDINGTON | Market Cap | 17,255 Cr. | Current Price | 221 ₹ | High / Low | 335 ₹ |
| Stock P/E | 13.9 | Book Value | 67.8 ₹ | Dividend Yield | 3.09 % | ROCE | 26.4 % |
| ROE | 25.2 % | Face Value | 2.00 ₹ | DMA 50 | 226 ₹ | DMA 200 | 246 ₹ |
| Chg in FII Hold | -0.45 % | Chg in DII Hold | -0.16 % | PAT Qtr | 289 Cr. | PAT Prev Qtr | 223 Cr. |
| RSI | 50.6 | MACD | -0.54 | Volume | 21,94,116 | Avg Vol 1Wk | 36,19,416 |
| Low price | 191 ₹ | High price | 335 ₹ | PEG Ratio | 2.69 | Debt to equity | 0.28 |
| 52w Index | 20.4 % | Qtr Profit Var | 37.8 % | EPS | 15.9 ₹ | Industry PE | 26.2 |
📈 Trend Analysis: REDINGTON is trading at ₹221, below both the 50 DMA (₹226) and 200 DMA (₹246), indicating short-term and medium-term weakness. The stock has corrected sharply from its 52-week high of ₹335 and is consolidating near current levels.
📊 RSI: At 50.6, RSI is neutral, suggesting balanced momentum without strong overbought or oversold signals.
📉 MACD: Slightly negative MACD (-0.54) signals mild bearish momentum, aligning with weak price action below moving averages.
📌 Bollinger Bands: Price is near the mid-band, signaling consolidation with limited volatility.
🔎 Volume Trends: Current volume (21,94,116) is below the 1-week average (36,19,416), showing reduced participation, which reflects cautious sentiment.
💡 Momentum Signals: Short-term momentum is weak. Optimal entry zone lies near ₹210–₹215 support levels. Exit/resistance zone is around ₹230–₹235, where selling pressure may emerge.
📌 Market Phase: The stock is consolidating with a bearish bias, attempting to stabilize near support after recent declines.
Positive
- 🚀 Quarterly PAT growth (₹289 Cr vs ₹223 Cr), up 37.8%.
- 📈 EPS of ₹15.9 supports earnings visibility.
- 💡 Strong ROCE (26.4%) and ROE (25.2%) highlight efficiency.
- 💰 Dividend yield of 3.09% adds investor appeal.
- 🔒 Low debt-to-equity ratio (0.28) ensures financial stability.
Limitation
- ⚠️ Current price below both 50 DMA and 200 DMA, signaling weakness.
- 📉 PEG ratio (2.69) reflects stretched growth valuation.
- 🔎 Reduced trading volume limits momentum strength.
Company Negative News
- 📉 FII holdings decreased by 0.45%, showing reduced foreign investor interest.
- ⚠️ DII holdings decreased by 0.16%, reflecting cautious domestic sentiment.
Company Positive News
- 📈 Quarterly PAT growth highlights operational strength.
- 💡 EPS of ₹15.9 supports long-term earnings visibility.
- 🔒 Dividend yield of 3.09% enhances investor confidence.
Industry
- 🏭 Industry PE at 26.2, higher than REDINGTON’s 13.9, suggesting undervaluation relative to peers.
- 📊 Sector growth driven by IT distribution and digital infrastructure demand.
Conclusion
⚖️ REDINGTON is consolidating with short-term weakness but supported by strong fundamentals, high efficiency metrics, and attractive dividend yield. Reduced institutional interest and weak volumes limit near-term upside. Strategy: consider entry near ₹210–₹215 support zones and book profits around ₹230–₹235 resistance. The stock is consolidating with cautious bias, awaiting stronger momentum for a sustained recovery.