RITES - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.1
| Stock Code | RITES | Market Cap | 9,477 Cr. | Current Price | 197 ₹ | High / Low | 316 ₹ |
| Stock P/E | 23.8 | Book Value | 52.4 ₹ | Dividend Yield | 3.83 % | ROCE | 20.0 % |
| ROE | 15.1 % | Face Value | 10.0 ₹ | DMA 50 | 216 ₹ | DMA 200 | 240 ₹ |
| Chg in FII Hold | -0.05 % | Chg in DII Hold | -0.03 % | PAT Qtr | 95.5 Cr. | PAT Prev Qtr | 102 Cr. |
| RSI | 37.8 | MACD | -7.39 | Volume | 6,10,529 | Avg Vol 1Wk | 5,81,029 |
| Low price | 188 ₹ | High price | 316 ₹ | PEG Ratio | -2.81 | Debt to equity | 0.00 |
| 52w Index | 7.00 % | Qtr Profit Var | 0.55 % | EPS | 8.30 ₹ | Industry PE | 15.2 |
📊 Chart Analysis: RITES is trading below both its 50 DMA (216 ₹) and 200 DMA (240 ₹), indicating a bearish setup. RSI at 37.8 suggests the stock is nearing oversold territory, while MACD at -7.39 confirms negative momentum. Bollinger Bands show price leaning towards the lower band, reflecting weakness. Current volume (6,10,529) is slightly above average (5,81,029), hinting at mild selling pressure.
📈 Momentum Signals: Short-term momentum remains weak. RSI near 30–35 could trigger a rebound, but MACD still signals bearish divergence.
💰 Entry Zone: 188 ₹ – 195 ₹ (near support levels).
📉 Exit Zone: 215 ₹ – 225 ₹ (resistance near 50 DMA).
🔎 Trend Status: The stock is consolidating with bearish bias, showing potential reversal only if RSI rebounds and price sustains above 216 ₹.
Positive
- Strong ROCE (20%) and ROE (15.1%) indicate efficient capital usage.
- Debt-free balance sheet (Debt-to-equity: 0.00).
- Attractive dividend yield of 3.83% provides steady income.
Limitation
- Stock P/E (23.8) is higher than industry PE (15.2), suggesting overvaluation.
- Quarterly PAT declined (95.5 Cr vs 102 Cr), showing weak earnings momentum.
- Trading below both 50 DMA and 200 DMA, signaling weakness.
Company Negative News
- Minor decline in FII (-0.05%) and DII (-0.03%) holdings.
- Stock corrected sharply from 52-week high (316 ₹ to 197 ₹).
Company Positive News
- Stable EPS (8.30 ₹) with consistent profitability.
- Dividend yield remains strong, supporting investor confidence.
Industry
- Industry PE at 15.2 indicates relatively cheaper valuations compared to RITES.
- Sector outlook remains stable with infrastructure demand supporting growth.
Conclusion
⚠️ RITES is currently in a bearish consolidation phase. Entry is favorable near 188–195 ₹ support with a strict stop-loss. Exit should be considered near 215–225 ₹ resistance. Long-term investors may wait for confirmation of reversal above 50 DMA with stronger volume before adding positions.