RRKABEL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.2

📊 Chart Patterns: RRKABEL is trading near its recent high (1,524 ₹) with current price at 1,492 ₹. The stock has shown strong upward momentum, supported by higher lows and higher highs, indicating bullish trend continuation.

📈 Moving Averages: Price > 50 DMA (1,366 ₹) and > 200 DMA (1,319 ₹) → strong bullish alignment.

📉 RSI: 59.5 → moderately strong, not overbought, suggesting room for further upside.

📈 MACD: 20.9 → positive crossover, confirming bullish momentum.

📊 Bollinger Bands: Price near upper band, indicating strength but also caution for possible short-term consolidation.

📊 Volume Trends: Current volume (76,435) is lower than 1-week average (1,28,130) → momentum is positive but needs stronger participation for breakout confirmation.

📍 Support Levels: 1,366 ₹ (DMA 50), 1,319 ₹ (DMA 200), and 1,250 ₹.

📍 Resistance Levels: 1,500–1,524 ₹ (recent high), 1,550 ₹.

🔎 Trend: The stock is trending upward with bullish signals. Consolidation may occur near 1,500–1,524 ₹ before a breakout toward higher levels.

Positive

• 📈 Quarterly PAT surged from 88.8 Cr. to 116 Cr. (+30%).
• 📊 EPS at 35.4 ₹ reflects strong earnings power.
• 📊 ROCE (19.7%) and ROE (15.2%) show efficient capital utilization.
• 📊 Low debt-to-equity ratio (0.17) indicates financial stability.
• 📊 DII holdings increased (+0.25%), showing domestic investor confidence.

Limitation

• ⚠️ High P/E ratio (42.0) compared to industry PE (20.0) → valuation premium.
• ⚠️ PEG ratio (3.10) suggests expensive growth expectations.
• ⚠️ Current volume below average, limiting breakout strength.

Company Negative News

• 📉 FII holdings declined (-0.39%), showing reduced foreign investor interest.
• 📉 Price near upper Bollinger Band may lead to short-term consolidation.

Company Positive News

• 📈 Quarterly profit growth (+133% YoY).
• 📊 Strong technical alignment above both 50 DMA and 200 DMA.
• 📊 Long-term uptrend with price near 52-week high (95.9% of range).

Industry

• 🏭 Electrical and cables sector PE at 20.0, lower than RRKABEL’s valuation, showing premium positioning.
• 📊 Industry growth supported by infrastructure expansion and rising demand for electrical products.

Conclusion

🔎 RRKABEL is in a strong uptrend with bullish signals (MACD positive, RSI healthy, price above key DMAs). Optimal entry zone lies near 1,360–1,380 ₹ on dips, while exit/resistance zone is 1,500–1,524 ₹. A breakout above 1,524 ₹ could push the stock toward 1,550–1,600 ₹. Long-term investors benefit from strong fundamentals and low debt, while short-term traders should watch for volume confirmation before chasing the breakout.