RKFORGE - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.3

📊 Technical Analysis Summary

• Trend Status: Reversing from uptrend
• Current Price: ₹542
• RSI (46.0): Neutral to weak — momentum fading
• MACD (-4.68): Bearish crossover — downward pressure
• Volume: Below average (3.65L vs 5.42L) — declining interest
• DMA 50/200: Price below both (₹561 & ₹647) — bearish confirmation
• Bollinger Bands: Price near lower band — potential support zone

📈 Entry & Exit Zones

• Support Levels: ₹530 / ₹513 / ₹490
• Resistance Levels: ₹561 / ₹585 / ₹620
• Optimal Entry: ₹530–₹540 (on dip near support)
• Exit Target: ₹585–₹620 (if momentum recovers)

✅ Positive

• EPS of ₹23.6 — strong earnings base
• PEG ratio of 2.02 — reasonable valuation for growth
• Debt-to-equity ratio of 0.55 — manageable leverage

⚠️ Limitation

• MACD and RSI show bearish momentum
• Price below key moving averages — weak technical setup
• ROCE (6.52%) and ROE (10.9%) — below industry benchmarks

📉 Company Negative News

• FII holding declined by 1.74% — foreign investor caution
• Quarterly PAT dropped from ₹208 Cr to ₹21.5 Cr — 49.4% decline

📈 Company Positive News

• DII holding slightly down (-0.10%) but still stable
• Stock trading near 52-week low — potential value zone

🏢 Industry

• RKFORGE operates in automotive and industrial forging — cyclical and demand-sensitive sector
• Industry P/E is 32.6 — RKFORGE trades slightly below peers
• Sector benefits from infrastructure and manufacturing growth

🧾 Conclusion

• RKFORGE is currently reversing with weak technical indicators and declining momentum
• Entry near ₹530 may offer upside toward ₹620 if support holds and sentiment improves
• Valuation is reasonable, but earnings volatility and technical weakness suggest caution in the short term