RITES - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.5

📊 Technical Analysis Summary

• Trend Status: Reversing from uptrend
• Current Price: ₹246
• RSI (43.4): Weak — approaching oversold zone
• MACD (-3.03): Bearish crossover — downward momentum
• Volume: Slightly below average (3.52L vs 3.79L) — fading interest
• DMA 50/200: Price below both (₹255 & ₹264) — bearish confirmation
• Bollinger Bands: Price near lower band — potential support zone

📈 Entry & Exit Zones

• Support Levels: ₹240 / ₹230 / ₹215
• Resistance Levels: ₹255 / ₹264 / ₹280
• Optimal Entry: ₹240–₹246 (on dip near support)
• Exit Target: ₹264–₹280 (on technical rebound)

✅ Positive

• Zero debt — strong financial discipline
• ROCE (20%) and ROE (15.1%) — efficient capital use
• Dividend yield of 3.06% — attractive for income investors

⚠️ Limitation

• MACD and RSI indicate bearish momentum
• Price below key moving averages — weak technical setup
• Negative PEG ratio (-3.65) — valuation concerns

📉 Company Negative News

• Quarterly PAT dropped from ₹134 Cr to ₹66.6 Cr — significant decline

📈 Company Positive News

• FII and DII holdings increased slightly — institutional interest remains
• EPS of ₹7.95 and consistent dividend payout

🏢 Industry

• RITES operates in engineering and infrastructure consultancy — project-driven and policy-sensitive sector
• Industry P/E is 22.1 — RITES trades at a premium
• Sector benefits from government infrastructure push and rail modernization

🧾 Conclusion

• RITES is currently reversing with weak technical indicators and declining momentum
• Entry near ₹240 may offer upside toward ₹280 if support holds and sentiment improves
• Strong fundamentals and yield support long-term view, but short-term caution is advised