TRENT - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.2

📉 TRENT is currently in a reversal phase with bearish momentum and declining price action. Entry zone: ₹4,600–₹4,694; exit zone: ₹4,945–₹5,050. Watch for stabilization above 50-DMA before initiating fresh positions.

📊 Technical Overview

• Price Action: Trading at ₹4,694, below both 50-DMA (₹4,945) and 200-DMA (₹5,331), indicating a bearish trend.
• RSI (39.7): Weak momentum, approaching oversold territory but not yet signaling reversal.
• MACD (-57.7): Strong bearish crossover, confirming downward pressure.
• Bollinger Bands: Price near lower band, suggesting oversold conditions with potential for technical bounce.
• Volume: Slightly above 1-week average, indicating active participation but not breakout strength.
• Support Zones: ₹4,600 (S1), ₹4,488 (S2)
• Resistance Zones: ₹4,945 (R1), ₹5,050 (R2)

✅ Positive

• Strong ROCE (28.6%) and ROE (27.2%) reflect excellent capital efficiency.
• EPS of ₹46.8 supports valuation and earnings visibility.
• Quarterly PAT increased from ₹350 Cr. to ₹423 Cr., a 23.5% jump.
• Volume slightly above average, indicating investor interest despite price weakness.

⚠️ Limitation

• Stock P/E (100) is significantly higher than industry average (42.4), indicating overvaluation.
• MACD and RSI both show bearish signals, limiting short-term upside.
• Price trading below key moving averages confirms downtrend.
• Dividend yield of 0.11% is negligible for income-focused investors.

📉 Company Negative News

• Decline in FII holdings (-1.58%) reflects reduced foreign investor confidence.
• Stock has corrected ~37% from its 52-week high of ₹7,493.

📈 Company Positive News

• DII holdings increased (+1.42%), showing strong domestic institutional support.
• Strong performance in fashion retail and store expansion driving long-term growth.

🏢 Industry

• Retail sector benefits from rising consumer demand and festive season tailwinds.
• Industry P/E of 42.4 reflects moderate valuation across peers.

🧭 Conclusion

• TRENT is in a reversal phase with bearish momentum and oversold technical indicators.
• Entry zone: ₹4,600–₹4,694; exit zone: ₹4,945–₹5,050 for short-term bounce trades.
• Long-term investors should wait for trend reversal confirmation before accumulating.