RTNINDIA - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.3

📊 Chart Patterns: RTNINDIA is trading below both its 50 DMA (45.9 ₹) and 200 DMA (52.3 ₹). Current price (41.3 ₹) is near its 52-week low (37.4 ₹), showing strong bearish momentum and breakdown from previous support levels.

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

📉 RSI: 26.4 → oversold territory, suggesting potential technical rebound but overall weak momentum.

📉 MACD: -1.97 → bearish crossover, confirming downward momentum.

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

📊 Volume Trends: Current volume (22,29,951) is significantly higher than 1-week average (13,17,558) → heavy selling pressure, showing distribution rather than accumulation.

📍 Support Levels: 40 ₹, 37.4 ₹ (52-week low), and 35 ₹.

📍 Resistance Levels: 45.9 ₹ (DMA 50), 52.3 ₹ (DMA 200), and 55 ₹.

🔎 Trend: The stock is reversing downward with strong bearish signals. A breakdown below 40 ₹ could trigger further decline, while a rebound above 46–52 ₹ may signal short-term recovery.

Positive

• 📊 ROE (10.7%) and ROCE (10.6%) show moderate capital efficiency.
• 📊 FII holdings increased (+0.22%), showing marginal foreign investor confidence.

Limitation

• ⚠️ Price trading near 52-week low (12.1% of range) → weak sentiment.
• ⚠️ EPS negative (–2.88 ₹), reflecting poor profitability.
• ⚠️ No dividend yield (0.00%) → limited investor incentive.
• ⚠️ RSI oversold but momentum remains weak.

Company Negative News

• 📉 PAT collapsed from 514 Cr. to –401 Cr. (loss-making quarter).
• 📉 DII holdings declined (–0.04%), showing reduced domestic investor confidence.
• 📉 Quarterly profit variation (–63.8%) highlights operational challenges.

Company Positive News

• 📊 Marginal increase in foreign institutional participation (+0.22%).

Industry

• 🏭 Infrastructure and power sector PE at 42.2, much higher than RTNINDIA’s negative earnings, showing valuation mismatch.
• 📊 Industry supported by government-led infrastructure initiatives, but company-specific fundamentals remain weak.

Conclusion

🔎 RTNINDIA is showing strong bearish reversal signals with price below key moving averages, RSI oversold, and MACD negative. Optimal entry zone lies near 40–41 ₹ only for high-risk traders looking for technical rebound. Exit/resistance zone is 46–52 ₹. 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 46 ₹ with volume support.