TORNTPOWER - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.5

📈 Technical Analysis

• Chart Patterns: TORNTPOWER is trading near the lower end of its 52-week range, showing weakness and bearish bias.
• Moving Averages: Current price (1,275 ₹) is below both 50 DMA (1,292 ₹) and 200 DMA (1,350 ₹), confirming downward pressure.
• RSI: At 38.9, RSI indicates weak momentum and is close to oversold territory.
• MACD: Negative at -7.92, signaling bearish continuation.
• Bollinger Bands: Price near lower band, suggesting oversold condition and potential minor rebound.
• Volume Trends: Current volume (4.5L) is higher than average weekly volume (3.6L), showing strong selling activity.

🎯 Momentum & Trade Zones

• Support Levels: 1,250 ₹ immediate support, 1,200 ₹ strong support, and long-term support at 1,188 ₹.
• Resistance Levels: 1,292 ₹ (50 DMA) and 1,350 ₹ (200 DMA).
• Entry Zone: Accumulate cautiously near 1,250–1,270 ₹ if rebound signals appear.
• Exit Zone: Short-term exit near 1,300–1,350 ₹.
• Trend: Stock is currently reversing downward but may consolidate near support levels.

✅ Positive

• Strong ROCE (16.9%) and ROE (18.7%).
• EPS at 57.3 ₹ reflects solid earnings base.
• PEG ratio at 0.42 indicates attractive valuation relative to growth.
• DII holding increased by 0.75%, reflecting domestic institutional support.
• Quarterly PAT improved from 685 Cr. to 746 Cr. (+60.8% variation).

⚠️ Limitation

• Stock trading below both 50 & 200 DMA, confirming bearish trend.
• RSI weak and MACD negative, showing lack of momentum.
• 52-week index at only 19.3%, reflecting underperformance.
• Debt-to-equity ratio at 0.38, showing moderate leverage.

📉 Company Negative News

• FII holding reduced by -0.97%, showing weaker foreign investor confidence.
• Stock has lost momentum with weak technical signals.

📊 Company Positive News

• Quarterly profits improved significantly (+60.8%).
• DII holding increased by 0.75%, showing domestic support.
• Strong fundamentals with healthy ROE and ROCE.

🏭 Industry

• Industry P/E at 21.9, close to TORNTPOWER’s 22.2, suggesting fair valuation relative to peers.
• Power sector outlook remains steady with demand growth, though margins are under pressure.

📝 Conclusion

• TORNTPOWER is in a bearish reversal phase, trading below key moving averages.
• Oversold signals suggest possible short-term bounce, but fundamentals remain supportive.
• Best strategy: cautious accumulation near 1,250–1,270 ₹ with strict stop-loss; exit near 1,300–1,350 ₹.
• Medium-term outlook cautiously positive; recovery depends on sustaining earnings growth and crossing 1,292–1,350 ₹ resistance levels.