RELINFRA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.5
| Stock Code | RELINFRA | Market Cap | 3,235 Cr. | Current Price | 79.4 ₹ | High / Low | 425 ₹ |
| Book Value | 595 ₹ | Dividend Yield | 0.00 % | ROCE | -1.41 % | ROE | -8.12 % |
| Face Value | 10.0 ₹ | DMA 50 | 118 ₹ | DMA 200 | 201 ₹ | Chg in FII Hold | -1.35 % |
| Chg in DII Hold | -0.21 % | PAT Qtr | -166 Cr. | PAT Prev Qtr | -152 Cr. | RSI | 29.1 |
| MACD | -10.7 | Volume | 68,38,257 | Avg Vol 1Wk | 31,17,809 | Low price | 74.6 ₹ |
| High price | 425 ₹ | Debt to equity | 0.03 | 52w Index | 1.37 % | Qtr Profit Var | -75.2 % |
| EPS | -10.0 ₹ | Industry PE | 24.6 |
📊 Chart Analysis: RELINFRA is trading far below both its 50 DMA (118 ₹) and 200 DMA (201 ₹), indicating strong weakness. RSI at 29.1 suggests oversold territory, while MACD at -10.7 confirms bearish divergence. Bollinger Bands show price hugging the lower band, reflecting heavy selling pressure. Current volume (68,38,257) is significantly higher than average (31,17,809), indicating strong selling activity.
📈 Momentum Signals: Short-term momentum is very weak. RSI below 30 suggests oversold conditions, which could trigger a technical rebound, but MACD remains negative, limiting upside potential.
💰 Entry Zone: 74 ₹ – 80 ₹ (near support levels).
📉 Exit Zone: 115 ₹ – 120 ₹ (resistance near 50 DMA).
🔎 Trend Status: The stock is in a strong downtrend, with only short-term rebound potential if oversold conditions trigger a bounce.
Positive
- Book value of 595 ₹ provides strong asset backing compared to current price.
- Debt-to-equity ratio of 0.03 indicates low leverage.
Limitation
- No meaningful P/E ratio due to negative earnings.
- ROCE (-1.41%) and ROE (-8.12%) are negative, showing poor capital efficiency.
- Trading far below both 50 DMA and 200 DMA, signaling weakness.
Company Negative News
- Quarterly PAT remains negative (-166 Cr vs -152 Cr), showing continued losses.
- FII holdings declined (-1.35%) and DII holdings also fell (-0.21%).
- Stock collapsed from 52-week high (425 ₹ to 79.4 ₹).
Company Positive News
- Low debt-to-equity ratio provides some financial stability despite losses.
- High book value compared to market price may attract value investors.
Industry
- Industry PE at 24.6 highlights profitability in peers, contrasting with RELINFRA’s losses.
- Sector outlook remains challenging given weak fundamentals in the company.
Conclusion
⚠️ RELINFRA is currently in a strong downtrend. Entry is highly risky, but oversold RSI may trigger short-term rebounds near 74–80 ₹. Exit should be considered near 115–120 ₹ resistance. Long-term investors should avoid until profitability improves and price sustains above 118–201 ₹ with stronger volume.