RENUKA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | RENUKA | Market Cap | 5,366 Cr. | Current Price | 25.2 ₹ | High / Low | 40.3 ₹ |
| Book Value | -4.35 ₹ | Dividend Yield | 0.00 % | ROCE | 9.99 % | ROE | % |
| Face Value | 1.00 ₹ | DMA 50 | 26.8 ₹ | DMA 200 | 30.2 ₹ | Chg in FII Hold | 0.12 % |
| Chg in DII Hold | -0.05 % | PAT Qtr | -319 Cr. | PAT Prev Qtr | -215 Cr. | RSI | 39.9 |
| MACD | -0.44 | Volume | 24,01,289 | Avg Vol 1Wk | 28,06,352 | Low price | 24.4 ₹ |
| High price | 40.3 ₹ | 52w Index | 4.66 % | Qtr Profit Var | -1,670 % | EPS | -3.17 ₹ |
| Industry PE | 10.3 |
📊 Chart Patterns: RENUKA is trading below both its 50 DMA (26.8 ₹) and 200 DMA (30.2 ₹), confirming a strong downtrend. Price action shows weakness with immediate support at 24.4–25 ₹ and resistance at 27–30 ₹. Broader resistance lies near 35–40 ₹.
📈 Moving Averages: Current price (25.2 ₹) is under both 50 DMA and 200 DMA, indicating bearish sentiment. Sustained trade above 27 ₹ is required to regain momentum.
📉 RSI: At 39.9, RSI is weak and close to oversold territory, suggesting potential for rebound but no confirmation yet.
📊 MACD: Negative MACD (-0.44) signals bearish momentum, aligning with the downtrend.
📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions. A mean reversion toward 27–28 ₹ is possible if buying interest emerges.
📊 Volume Trends: Current volume (24.0 lakh) is below 1-week average (28.0 lakh), showing reduced participation and weak conviction in recent moves.
🚀 Short-term Momentum Signals: Entry zone: 24.5–25 ₹ (support). Exit zone: 27–30 ₹ (resistance). Momentum is bearish but oversold, suggesting tactical rebound potential.
📌 Trend Status: The stock is reversing downward and currently trending lower. Only a sustained close above 30 ₹ would shift bias toward consolidation.
Positive
- 📈 RSI near oversold levels, offering potential rebound opportunity.
- 💹 Increase in FII holding (+0.12%) shows marginal foreign investor interest.
- 📊 Defined support at 24.4 ₹ provides tactical entry levels.
Limitation
- ⚠️ Price below both 50 DMA and 200 DMA, confirming bearish trend.
- 📉 Negative EPS (-3.17 ₹) and losses widening.
- 📊 Book value negative (-4.35 ₹), reflecting weak fundamentals.
- 💰 No dividend yield (0.00%), limiting income appeal.
Company Negative News
- 📉 Quarterly PAT worsened (-319 Cr. vs -215 Cr.).
- ⚠️ Sharp decline in profit variation (-1,670%).
- 📉 Reduction in DII holding (-0.05%).
Company Positive News
- 📈 Slight increase in FII holding (+0.12%).
Industry
- 🏭 Industry PE (10.3) is much lower, highlighting RENUKA’s weak valuation metrics.
- 📊 Sugar and commodities sector outlook remains cyclical, dependent on global demand and pricing.
Conclusion
📌 RENUKA is in a strong downtrend, trading below key moving averages with oversold RSI. Entry near 24.5–25 ₹ offers rebound potential, while resistance at 27–30 ₹ is critical for recovery. Long-term investors should be cautious of negative earnings and weak fundamentals, but short-term traders may find tactical opportunities if the stock sustains above 27 ₹ with volume confirmation.