REDINGTON - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | REDINGTON | Market Cap | 18,094 Cr. | Current Price | 231 ₹ | High / Low | 335 ₹ |
| Stock P/E | 15.5 | Book Value | 61.3 ₹ | Dividend Yield | 2.94 % | ROCE | 32.6 % |
| ROE | 35.0 % | Face Value | 2.00 ₹ | DMA 50 | 256 ₹ | DMA 200 | 261 ₹ |
| Chg in FII Hold | 0.13 % | Chg in DII Hold | 0.31 % | PAT Qtr | 223 Cr. | PAT Prev Qtr | 532 Cr. |
| RSI | 40.9 | MACD | -7.70 | Volume | 37,42,929 | Avg Vol 1Wk | 51,56,777 |
| Low price | 177 ₹ | High price | 335 ₹ | PEG Ratio | 1.00 | Debt to equity | 0.30 |
| 52w Index | 34.4 % | Qtr Profit Var | -51.5 % | EPS | 14.9 ₹ | Industry PE | 29.9 |
📊 Chart Analysis: REDINGTON is trading below both its 50 DMA (256 ₹) and 200 DMA (261 ₹), indicating weakness. RSI at 40.9 suggests neutral-to-weak momentum, while MACD at -7.70 confirms bearish divergence. Bollinger Bands show price leaning towards the lower band, reflecting selling pressure. Current volume (37,42,929) is below average (51,56,777), showing reduced participation.
📈 Momentum Signals: Short-term momentum remains weak. RSI above 40 suggests the stock is not oversold, but MACD remains negative, limiting upside potential.
💰 Entry Zone: 220 ₹ – 230 ₹ (near support levels).
📉 Exit Zone: 255 ₹ – 265 ₹ (resistance near 50 DMA and 200 DMA).
🔎 Trend Status: The stock is consolidating with bearish bias, showing potential reversal only if price sustains above 256 ₹ with stronger volume.
Positive
- Strong ROCE (32.6%) and ROE (35.0%) indicate excellent capital efficiency.
- Dividend yield of 2.94% provides attractive income support.
- EPS at 14.9 ₹ reflects consistent profitability.
Limitation
- Quarterly PAT declined sharply (223 Cr vs 532 Cr), showing earnings pressure.
- Stock trading below both 50 DMA and 200 DMA, signaling weakness.
- High volatility with correction from 335 ₹ to 231 ₹.
Company Negative News
- Quarterly profit variation (-51.5%) highlights significant earnings decline.
- Stock corrected from 52-week high (335 ₹ to 231 ₹).
Company Positive News
- FII holdings increased (+0.13%) and DII holdings rose (+0.31%), showing institutional support.
- PEG ratio of 1.00 indicates fair valuation relative to growth.
Industry
- Industry PE at 29.9 is higher than REDINGTON’s P/E of 15.5, suggesting undervaluation compared to peers.
- Sector outlook remains stable with IT distribution and services demand supporting growth.
Conclusion
⚠️ REDINGTON is currently in a bearish consolidation phase. Entry is favorable near 220–230 ₹ support with a strict stop-loss. Exit should be considered near 255–265 ₹ resistance. Long-term investors may wait for confirmation of reversal above 256 ₹ with stronger volume before adding positions.