TRENT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.8
| Stock Code | TRENT | Market Cap | 1,32,558 Cr. | Current Price | 3,729 ₹ | High / Low | 6,261 ₹ |
| Stock P/E | 78.3 | Book Value | 186 ₹ | Dividend Yield | 0.13 % | ROCE | 28.6 % |
| ROE | 27.2 % | Face Value | 1.00 ₹ | DMA 50 | 4,110 ₹ | DMA 200 | 4,776 ₹ |
| Chg in FII Hold | -1.19 % | Chg in DII Hold | 1.53 % | PAT Qtr | 451 Cr. | PAT Prev Qtr | 423 Cr. |
| RSI | 34.7 | MACD | -110 | Volume | 6,71,475 | Avg Vol 1Wk | 8,46,818 |
| Low price | 3,693 ₹ | High price | 6,261 ₹ | PEG Ratio | 1.00 | Debt to equity | 0.35 |
| 52w Index | 1.40 % | Qtr Profit Var | 6.45 % | EPS | 47.6 ₹ | Industry PE | 43.7 |
📊 Chart Patterns: TRENT is trading at 3,729 ₹, well below both 50 DMA (4,110 ₹) and 200 DMA (4,776 ₹). The price has corrected sharply from its 52-week high (6,261 ₹) and is hovering near its 52-week low (3,693 ₹), reflecting a strong bearish trend.
📈 Moving Averages: Current price is under both short-term and long-term averages, confirming bearish sentiment. The 50 DMA is also below the 200 DMA, reinforcing weakness.
📉 RSI: At 34.7, RSI indicates the stock is approaching oversold territory, suggesting potential short-term support but no strong reversal yet.
📉 MACD: Strongly negative at -110, showing bearish divergence and lack of buying strength.
📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible short-term bounce.
📊 Volume Trends: Current volume (6.7 lakh) is lower than average weekly volume (8.4 lakh), suggesting reduced participation and weak investor interest.
📌 Momentum Signals: Short-term momentum remains bearish. Support lies around 3,690–3,700 ₹, while resistance is near 4,100–4,150 ₹.
🎯 Entry Zone: 3,700–3,730 ₹ (near support, only for short-term traders with strict stop-loss).
🎯 Exit Zone: 4,100–4,150 ₹ (near 50 DMA resistance).
🔎 Trend Status: The stock is consolidating with bearish bias, not yet showing reversal signals.
Positive
- EPS of 47.6 ₹ indicates profitability.
- ROCE (28.6%) and ROE (27.2%) reflect strong capital efficiency.
- Quarterly PAT improved from 423 Cr. to 451 Cr. (6.45% growth).
- DII holdings increased by 1.53%, showing domestic institutional confidence.
Limitation
- Stock trading below both 50 DMA and 200 DMA shows weak technical strength.
- High P/E ratio (78.3) compared to industry PE (43.7) suggests overvaluation risk.
- Dividend yield of 0.13% is very low.
- 52-week performance index at 1.40% indicates severe underperformance.
Company Negative News
- FII holdings decreased by -1.19%, showing reduced foreign investor confidence.
- Stock price corrected sharply from 6,261 ₹ high to current levels.
Company Positive News
- Quarterly PAT growth signals improving operational efficiency.
- DII holdings increased, reflecting domestic institutional support.
Industry
- Industry PE at 43.7 suggests sector trades at moderate valuations compared to TRENT’s higher P/E.
- Retail sector remains resilient with long-term demand outlook.
Conclusion
⚠️ TRENT is consolidating with a bearish bias, trading below key moving averages and showing weak momentum. Short-term traders may consider entry near 3,700–3,730 ₹ with strict stop-loss, targeting 4,100–4,150 ₹ resistance. Long-term investors should wait for a clear reversal above 4,110 ₹ (50 DMA) with sustained volume before fresh positions.