RENUKA - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.7

📈 Chart & Trend Analysis:

RENUKA is trading at ₹25.6, below both its 50 DMA (₹28.0) and 200 DMA (₹31.2), indicating a bearish trend. RSI at 46.1 suggests neutral momentum, neither oversold nor overbought. MACD at -0.47 is negative, confirming mild bearish undertone. Price is close to its 52-week low (₹24.7), showing downside pressure. Bollinger Bands suggest price leaning toward the lower band, reflecting weakness. Current volume (52.5 lakh) is significantly higher than the weekly average (27.7 lakh), indicating strong selling activity.

🔑 Momentum Signals:

- RSI near 46 shows neutral momentum with limited upside.

- MACD negative, confirming bearish continuation.

- Price below both DMAs signals weakness.

- Elevated volume indicates strong participation in the downtrend.

🎯 Entry & Exit Zones:

- Support: ₹24.7 – ₹25.0 (near 52-week low).

- Resistance: ₹28.0 – ₹31.0 (near 50 & 200 DMA).

- Optimal Entry: ₹25 – ₹26 range for speculative rebound trades.

- Exit/Profit Booking: ₹28 – ₹31 unless breakout occurs.

📊 Trend Status:

The stock is reversing downward with bearish signals. Elevated volume suggests strong selling pressure, though RSI indicates potential sideways consolidation.

Positive

• FII holdings increased slightly (+0.12%), showing foreign investor interest.
• ROCE at 9.99% indicates moderate operational efficiency.
• Stock trading above its absolute 52-week low (₹24.7), showing some resilience.

Limitation

• Price trading below both 50 DMA and 200 DMA.
• Negative EPS (-₹3.17) reflects weak profitability.
• Book value negative (-₹4.35), raising concerns about balance sheet strength.
• No dividend yield, offering no income return.

Company Negative News

• Quarterly PAT declined sharply to -₹319 Cr from -₹215 Cr.
• Quarterly profit variation at -1,670% shows severe deterioration.
• DII holdings reduced (-0.05%), reflecting weaker domestic investor confidence.

Company Positive News

• FII holdings increased (+0.12%), showing foreign investor support.
• High trading volume indicates investor interest, though currently on the sell side.

Industry

• Industry P/E at 12.4, RENUKA trades at a discount but lacks profitability.
• Sugar and commodities sector is cyclical, dependent on global demand and pricing trends.
• Peers with positive earnings trade at healthier multiples, highlighting RENUKA’s relative weakness.

Conclusion

⚠️ RENUKA is in a bearish reversal phase with strong selling pressure. Entry near ₹25–₹26 may be considered only for speculative rebound trades, while resistance at ₹28–₹31 is critical. Weak fundamentals, negative earnings, and balance sheet concerns warrant cautious positioning despite short-term technical bounce potential.