ROUTE - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.6

📊 Chart Patterns: ROUTE is trading slightly above its 50 DMA (716 ₹) but below its 200 DMA (900 ₹). Current price (720 ₹) indicates short-term strength but long-term weakness. The broader pattern shows sideways consolidation after a steep decline from its 52-week high (1,449 ₹).

📈 Moving Averages: Price > 50 DMA but < 200 DMA → neutral alignment, suggesting short-term recovery but long-term bearishness.

📉 RSI: 58.8 → moderately strong momentum, not overbought, suggesting room for upside.

📉 MACD: -1.72 → mild bearish crossover, showing caution despite near-term strength.

📊 Bollinger Bands: Price near mid-band, indicating consolidation with potential breakout if volume sustains.

📊 Volume Trends: Current volume (1.02 Cr. shares) is significantly higher than 1-week average (27.1 Lakh shares) → strong participation, suggesting accumulation and possible breakout attempts.

📍 Support Levels: 700 ₹, 680 ₹, and strong base near 636 ₹ (52-week low).

📍 Resistance Levels: 750 ₹, 800 ₹, and 900 ₹ (DMA 200).

🔎 Trend: The stock is consolidating between 700–750 ₹. A breakout above 750–800 ₹ could trigger bullish momentum toward 900 ₹, while a drop below 700 ₹ may lead to correction toward 680–636 ₹.

Positive

• 📈 EPS at 18.8 ₹ supports earnings strength.
• 📊 ROCE (16.3%) and ROE (12.4%) show healthy capital efficiency.
• 💰 Dividend yield of 1.54% provides income support for investors.
• 📊 PEG ratio (0.47) suggests undervaluation relative to growth potential.
• 📊 Debt-free balance sheet (Debt-to-equity 0.00) adds financial stability.

Limitation

• ⚠️ Price below 200 DMA → long-term weakness.
• ⚠️ RSI moderately strong but MACD negative, showing mixed momentum signals.
• ⚠️ FII holdings declined (–0.62%) and DII holdings declined (–0.67%).
• ⚠️ Quarterly profit variation (–31.4%) highlights earnings pressure.

Company Negative News

• 📉 Institutional investors reducing stake (FII –0.62%, DII –0.67%).
• 📉 PAT growth slowed, with quarterly profit variation at –31.4% YoY.

Company Positive News

• 📈 Sequential PAT growth from 30.4 Cr. to 32.9 Cr.
• 📊 Strong volume activity suggests accumulation interest.
• 📊 Debt-free structure and dividend yield provide investor confidence.

Industry

• 💻 IT services and communication sector PE at 15.7, lower than ROUTE’s PE (32.6), suggesting valuation premium.
• 📊 Industry supported by digital adoption, enterprise communication, and cloud-based services growth.

Conclusion

🔎 ROUTE is consolidating with mixed signals — price above 50 DMA but below 200 DMA, RSI healthy, MACD mildly negative. Optimal entry zone lies near 700–720 ₹ if support holds, while exit/resistance zone is 750–800 ₹. Long-term investors should be cautious due to valuation premium and earnings pressure, while short-term traders may look for breakout trades above 750 ₹ for momentum toward 900 ₹.