RPOWER - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.8

📊 Chart Patterns: RPOWER is trading below both its 50 DMA (40.2 ₹) and 200 DMA (44.4 ₹). Current price (38.6 ₹) is near the lower end of its 52-week range (31.3–76.5 ₹), showing weakness and a downward bias. The broader pattern indicates a breakdown from consolidation zones.

📈 Moving Averages: Price < 50 DMA and < 200 DMA → bearish alignment, confirming weakness in both short-term and long-term trends.

📉 RSI: 49.7 → neutral zone, suggesting indecision with no strong momentum.

📉 MACD: -1.59 → bearish crossover, confirming weak short-term momentum.

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

📊 Volume Trends: Current volume (16.86 Cr. shares) is significantly higher than 1-week average (10.04 Cr. shares) → heavy trading activity, suggesting distribution pressure rather than accumulation.

📍 Support Levels: 37 ₹, 35 ₹, and strong base near 31.3 ₹ (52-week low).

📍 Resistance Levels: 40.2 ₹ (DMA 50), 44.4 ₹ (DMA 200), and 50 ₹.

🔎 Trend: The stock is reversing downward with bearish signals. A breakdown below 37 ₹ could trigger further decline, while a rebound above 40–44 ₹ may signal short-term recovery momentum.

Positive

• 📈 PAT improved sequentially from 1.90 Cr. to 4.73 Cr.
• 📊 FII holdings increased (+0.16%), showing marginal foreign investor confidence.
• 📊 DII holdings also increased (+0.14%), indicating some domestic support.

Limitation

• ⚠️ Price trading near lower end of 52-week range (16.1%).
• ⚠️ EPS negative (–0.24 ₹), reflecting poor profitability.
• ⚠️ ROE (–0.99%) and ROCE (–0.18%) indicate weak capital efficiency.
• ⚠️ Dividend yield at 0.00% → no income support for investors.

Company Negative News

• 📉 Quarterly profit variation (–2.87%) shows earnings pressure.
• 📉 Technical indicators (MACD negative, price below DMAs) confirm bearish momentum.

Company Positive News

• 📈 Sequential PAT growth despite overall weak fundamentals.
• 📊 Marginal increase in both FII and DII holdings.

Industry

• ⚡ Power sector PE at 26.7, but RPOWER has no meaningful P/E due to negative earnings.
• 📊 Industry supported by government-led infrastructure and energy initiatives, though company-specific fundamentals remain weak.

Conclusion

🔎 RPOWER is showing bearish reversal signals with price below key moving averages, RSI neutral, and MACD negative. Optimal entry zone lies near 37–38 ₹ only for high-risk traders looking for technical rebound. Exit/resistance zone is 40–44 ₹. Long-term investors should remain cautious due to negative earnings and weak fundamentals, while short-term traders may attempt rebound trades only if price sustains above 40 ₹ with strong volume support.