RRKABEL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.3
| Stock Code | RRKABEL | Market Cap | 22,032 Cr. | Current Price | 1,945 ₹ | High / Low | 2,060 ₹ |
| Stock P/E | 44.0 | Book Value | 227 ₹ | Dividend Yield | 0.49 % | ROCE | 28.0 % |
| ROE | 21.3 % | Face Value | 5.00 ₹ | DMA 50 | 1,658 ₹ | DMA 200 | 1,463 ₹ |
| Chg in FII Hold | 0.70 % | Chg in DII Hold | -0.61 % | PAT Qtr | 166 Cr. | PAT Prev Qtr | 130 Cr. |
| RSI | 67.9 | MACD | 124 | Volume | 2,14,481 | Avg Vol 1Wk | 4,48,558 |
| Low price | 1,165 ₹ | High price | 2,060 ₹ | PEG Ratio | 1.13 | Debt to equity | 0.13 |
| 52w Index | 87.2 % | Qtr Profit Var | 30.0 % | EPS | 43.0 ₹ | Industry PE | 25.3 |
📈 Trend Analysis: RRKABEL is trading at ₹1,945, comfortably above both the 50 DMA (₹1,658) and 200 DMA (₹1,463), confirming a strong uptrend. The stock is close to its 52-week high of ₹2,060, reflecting bullish momentum.
📊 RSI: At 67.9, RSI is approaching overbought territory, suggesting caution for fresh entries as short-term pullbacks are possible.
📉 MACD: Positive MACD (124) supports strong bullish momentum, aligning with the price action above moving averages.
📌 Bollinger Bands: Price is near the upper band, signaling potential consolidation or minor correction in the short term.
🔎 Volume Trends: Current volume (2,14,481) is significantly below the 1-week average (4,48,558), showing reduced participation at higher levels, which may precede consolidation.
💡 Momentum Signals: Short-term momentum remains positive but stretched. Optimal entry zone lies near ₹1,880–₹1,900 support levels. Exit/resistance zone is around ₹2,050–₹2,070, where selling pressure may emerge.
📌 Market Phase: The stock is trending strongly, with signs of near-term consolidation due to overbought RSI and lower volumes.
Positive
- 🚀 Strong uptrend above both 50 DMA and 200 DMA.
- 💰 Quarterly PAT growth (₹166 Cr vs ₹130 Cr), up 30%.
- 📈 High ROCE (28%) and ROE (21.3%) indicate efficient capital use.
- 🌍 FII holdings increased by 0.70%, showing foreign investor confidence.
- 🔒 Low debt-to-equity ratio (0.13) ensures financial stability.
Limitation
- ⚠️ Elevated P/E ratio (44.0) compared to industry PE (25.3), suggesting premium valuation.
- 📉 RSI near overbought zone may trigger short-term corrections.
- 🔎 Lower trading volume near highs indicates cautious sentiment.
Company Negative News
- 📉 DII holdings decreased by 0.61%, showing reduced domestic institutional interest.
- ⚠️ Premium valuation raises concerns about sustainability of current price levels.
Company Positive News
- 📈 Quarterly PAT growth of 30% highlights operational strength.
- 💡 EPS of ₹43 supports long-term earnings visibility.
- 🔒 Strong balance sheet with low leverage enhances investor confidence.
Industry
- 🏭 Industry PE at 25.3, lower than RRKABEL’s 44.0, highlighting premium valuation.
- 📊 Sector growth driven by infrastructure, housing, and electrical demand.
Conclusion
⚖️ RRKABEL is trending strongly with solid fundamentals and investor confidence. However, overbought RSI and premium valuations suggest caution for fresh entries. Strategy: accumulate near ₹1,880–₹1,900 support zones and consider booking profits around ₹2,050–₹2,070 resistance. The stock is trending with potential consolidation before the next breakout.