TECHNOE - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.6

📈 Technical Analysis

• Chart Patterns: Stock is trading below both 50 DMA (1,215 ₹) and 200 DMA (1,306 ₹), showing weakness and bearish bias.
• Moving Averages: Current price (1,098 ₹) is significantly below key moving averages, indicating downward pressure.
• RSI: At 29.2, RSI is in oversold territory, suggesting potential rebound but also highlighting weak momentum.
• MACD: Negative at -46.0, confirming bearish trend continuation.
• Bollinger Bands: Price near lower band, signaling oversold condition and possible short-term bounce.
• Volume Trends: Current volume (2.29L) is higher than average weekly volume (1.45L), showing strong selling activity.

🎯 Momentum & Trade Zones

• Support Levels: 1,050 ₹ and strong support near 1,000 ₹; long-term support at 785 ₹.
• Resistance Levels: 1,215 ₹ (50 DMA) and 1,306 ₹ (200 DMA).
• Entry Zone: Accumulate near 1,050–1,080 ₹ if rebound signs appear.
• Exit Zone: Short-term exit near 1,200–1,250 ₹.
• Trend: Stock is currently reversing downward but oversold signals suggest possible short-term consolidation or bounce.

✅ Positive

• Strong ROCE (16.6%) and ROE (12.9%).
• Low debt-to-equity ratio (0.01), ensuring financial stability.
• Quarterly PAT improved from 98.2 Cr. to 123 Cr. (+36.6% variation).
• EPS at 41.6 ₹, showing earnings strength.

⚠️ Limitation

• Stock trading below both 50 & 200 DMA, indicating bearish trend.
• High P/E ratio (27.8) compared to industry average (18.8).
• Dividend yield is low at 0.85%.
• RSI oversold but MACD negative, showing weak momentum.

📉 Company Negative News

• DII holding reduced by -1.42%, showing reduced domestic institutional confidence.
• Stock has lost momentum with 52-week index at only 33.5%.

📊 Company Positive News

• FII holding increased slightly (+0.24%), showing foreign investor interest.
• Quarterly profits improved significantly (+36.6%).
• Strong balance sheet with negligible debt.

🏭 Industry

• Industry P/E at 18.8, lower than company’s P/E, suggesting TECHNOE trades at premium valuation.
• Sector outlook stable, but valuations remain stretched compared to peers.

📝 Conclusion

• TECHNOE is in a bearish reversal phase, trading below key moving averages.
• Oversold RSI suggests possible short-term bounce, but trend remains weak.
• Best strategy: accumulate cautiously near 1,050–1,080 ₹ and book profits near 1,200–1,250 ₹.
• Medium-term outlook cautious; recovery depends on sustaining earnings growth and crossing 1,215–1,306 ₹ resistance levels.