RRKABEL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | RRKABEL | Market Cap | 15,576 Cr. | Current Price | 1,377 ₹ | High / Low | 1,563 ₹ |
| Stock P/E | 33.7 | Book Value | 206 ₹ | Dividend Yield | 0.44 % | ROCE | 19.7 % |
| ROE | 15.2 % | Face Value | 5.00 ₹ | DMA 50 | 1,416 ₹ | DMA 200 | 1,352 ₹ |
| Chg in FII Hold | 0.22 % | Chg in DII Hold | 0.07 % | PAT Qtr | 130 Cr. | PAT Prev Qtr | 116 Cr. |
| RSI | 42.7 | MACD | -27.8 | Volume | 4,28,269 | Avg Vol 1Wk | 2,23,779 |
| Low price | 750 ₹ | High price | 1,563 ₹ | PEG Ratio | 2.48 | Debt to equity | 0.17 |
| 52w Index | 77.1 % | Qtr Profit Var | 91.1 % | EPS | 39.7 ₹ | Industry PE | 17.9 |
📊 Chart & Trend Analysis: RRKABEL is trading at 1,377 ₹, slightly below its 50 DMA (1,416 ₹) but above its 200 DMA (1,352 ₹), indicating short-term weakness but medium-term support. RSI at 42.7 suggests neutral-to-weak momentum, while MACD at -27.8 confirms bearish crossover. Bollinger Bands show price moving near the lower-mid band, signaling consolidation with downside pressure but potential for rebound if support holds.
📈 Momentum Signals: Current volume (4.28 lakh) is higher than the 1-week average (2.23 lakh), reflecting strong participation despite weak momentum. RSI near neutral levels suggests limited immediate upside, but volume strength may support a recovery attempt.
🎯 Entry Zone: 1,350–1,380 ₹ (near 200 DMA support)
🚪 Exit Zone: 1,420–1,480 ₹ (resistance near 50 DMA and upper trendline)
📌 Trend Status: Consolidating with mild bearish bias. A reversal is possible if price sustains above 1,416 ₹ with volume confirmation.
Positive
- Strong ROCE at 19.7% and ROE at 15.2% indicate efficient capital use.
- Low debt-to-equity ratio of 0.17 shows financial stability.
- Quarterly PAT improved to 130 Cr. from 116 Cr., showing growth momentum.
- EPS of 39.7 ₹ reflects profitability.
- FII (+0.22%) and DII (+0.07%) holdings increased, showing institutional support.
Limitation
- Stock trading below 50 DMA, signaling short-term weakness.
- High P/E of 33.7 compared to industry PE of 17.9, making valuation expensive.
- PEG ratio of 2.48 suggests overvaluation relative to growth.
Company Negative News
- MACD indicates bearish crossover, limiting immediate upside.
- Neutral RSI suggests lack of strong momentum.
Company Positive News
- Quarterly profit variation of +91.1% highlights strong earnings growth.
- 52-week performance index at 77.1% shows relative strength.
Industry
- Industry PE at 17.9 is much lower than RRKABEL’s 33.7, suggesting sector peers are more reasonably valued.
- Electrical and cable sector benefits from infrastructure expansion and housing demand.
Conclusion
⚖️ RRKABEL is consolidating with mild bearish bias, trading below its 50 DMA but supported by its 200 DMA. Entry near 1,350–1,380 ₹ offers tactical opportunity, while exits around 1,420–1,480 ₹ align with resistance. Strong fundamentals and profit growth support medium-term stability, but expensive valuation and weak technicals warrant cautious positioning until a breakout above 1,416 ₹ confirms reversal.