RITES - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.0

📊 Chart Patterns: RITES is trading below both its 50 DMA (240 ₹) and 200 DMA (256 ₹). Current price (226 ₹) reflects weakness, with the stock struggling to regain momentum after a sharp decline from its 52-week high (316 ₹).

📈 Moving Averages: Price < 50 DMA and < 200 DMA → bearish alignment, signaling short-term and medium-term weakness.

📉 RSI: 33.8 → near oversold territory, suggesting potential rebound if support holds.

📉 MACD: -5.61 → bearish crossover, confirming negative momentum.

📊 Bollinger Bands: Price near lower band, indicating oversold conditions but also risk of further downside.

📊 Volume Trends: Current volume (2,10,205) is lower than 1-week average (2,55,476) → weak participation, showing lack of strong buying interest.

📍 Support Levels: 220 ₹, 210 ₹, and strong base near 192 ₹ (52-week low).

📍 Resistance Levels: 240 ₹ (DMA 50), 256 ₹ (DMA 200), and 270 ₹.

🔎 Trend: The stock is reversing downward with bearish signals. A breakdown below 220 ₹ could trigger further decline, while a rebound above 240–256 ₹ may signal short-term recovery.

Positive

• 📈 Quarterly PAT improved from 66.6 Cr. to 102 Cr. (+53%).
• 📊 EPS at 8.29 ₹ supports earnings strength.
• 📊 ROCE (20.0%) and ROE (15.1%) show efficient capital utilization.
• 💰 Dividend yield of 3.34% provides attractive income for investors.
• 📊 Debt-free balance sheet (Debt-to-equity 0.00) adds financial stability.

Limitation

• ⚠️ Price trading below both 50 DMA and 200 DMA → bearish technical setup.
• ⚠️ PEG ratio (-3.23) suggests weak earnings growth outlook.
• ⚠️ RSI near oversold but momentum remains weak.
• ⚠️ Stock trading near lower end of 52-week range (27.5%).

Company Negative News

• 📉 Weak technical signals (MACD negative, RSI oversold).
• 📉 Stock price significantly below long-term averages.

Company Positive News

• 📈 Quarterly profit growth (+18.9% YoY).
• 📊 Strong dividend yield and debt-free balance sheet.
• 📊 Institutional investors (FII +0.04%, DII +0.02%) marginally increasing stake.

Industry

• 🏗️ Infrastructure and engineering sector PE at 18.8, lower than RITES’s PE (27.3), suggesting valuation premium.
• 📊 Industry supported by government-led infrastructure projects and railway expansion.

Conclusion

🔎 RITES is showing bearish reversal signals with price below key moving averages, weak RSI, and negative MACD. Optimal entry zone lies near 220–225 ₹ if support holds, while exit/resistance zone is 240–256 ₹. Long-term investors may find value due to strong dividend yield and debt-free balance sheet, but short-term traders should remain cautious until a clear breakout above 240–256 ₹ confirms recovery momentum.