REDINGTON - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.5

📊 Chart Patterns: REDINGTON is trading slightly below its 50 DMA (277 ₹) but above its 200 DMA (263 ₹). Current price (272 ₹) indicates consolidation after a decline from its recent high (335 ₹). The broader pattern shows sideways movement with mild bearish bias.

📈 Moving Averages: Price < 50 DMA but > 200 DMA → neutral to mildly bearish short-term, bullish long-term.

📉 RSI: 41.6 → weak momentum, close to oversold territory, suggesting possible rebound if support holds.

📉 MACD: -1.95 → bearish crossover, confirming short-term weakness.

📊 Bollinger Bands: Price near lower band, indicating oversold conditions but also potential for bounce.

📊 Volume Trends: Current volume (8,26,152) is lower than 1-week average (14,07,724) → weak participation, showing lack of strong buying interest.

📍 Support Levels: 263 ₹ (DMA 200), 250 ₹, and strong base near 230 ₹.

📍 Resistance Levels: 277 ₹ (DMA 50), 300 ₹, and 335 ₹ (recent high).

🔎 Trend: The stock is consolidating between 263–277 ₹. A breakdown below 263 ₹ could trigger reversal toward 250–230 ₹, while a breakout above 277–300 ₹ may lead to short-term bullish momentum.

Positive

• 📈 EPS at 17.9 ₹ supports valuation strength.
• 📊 ROCE (32.6%) and ROE (35.0%) show excellent capital efficiency.
• 💰 Dividend yield of 2.55% provides attractive income for investors.
• 📊 DII holdings increased (+0.32%), showing domestic investor confidence.
• 📊 PEG ratio (0.97) suggests fair valuation relative to growth.

Limitation

• ⚠️ Price trading below 50 DMA → short-term weakness.
• ⚠️ RSI weak and MACD negative, limiting upside potential.
• ⚠️ Quarterly profit variation (–14.0%) shows earnings pressure.
• ⚠️ Volume below average, indicating lack of strong momentum.

Company Negative News

• 📉 FII holdings declined (–0.77%), showing reduced foreign investor confidence.
• 📉 Short-term technical indicators (RSI, MACD) confirm weakness.

Company Positive News

• 📈 PAT surged sequentially from 200 Cr. to 532 Cr.
• 📊 Strong fundamentals with high ROCE and ROE.
• 📊 Domestic institutional investors increasing stake.

Industry

• 💻 IT distribution and services sector PE at 32.7, higher than REDINGTON’s PE (15.1), suggesting undervaluation relative to peers.
• 📊 Industry supported by digital transformation, cloud adoption, and hardware demand cycles.

Conclusion

🔎 REDINGTON is consolidating with mixed signals — price above 200 DMA but below 50 DMA, RSI weak, and MACD negative. Optimal entry zone lies near 263–270 ₹ if support holds, while exit/resistance zone is 300–335 ₹. Long-term investors may find value in strong fundamentals and attractive dividend yield, while short-term traders should wait for breakout above 277–300 ₹ for momentum trades.