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TRENT - Technical Analysis with Chart Patterns & Indicators

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Rating: 4

Last Updated Time : 03 May 26, 11:25 am

Technical Rating: 4.0

Stock Code TRENT Market Cap 1,47,335 Cr. Current Price 4,145 ₹ High / Low 6,261 ₹
Stock P/E 74.1 Book Value 217 ₹ Dividend Yield 0.12 % ROCE 29.5 %
ROE 29.2 % Face Value 1.00 ₹ DMA 50 3,962 ₹ DMA 200 4,388 ₹
Chg in FII Hold -0.03 % Chg in DII Hold 0.82 % PAT Qtr 455 Cr. PAT Prev Qtr 660 Cr.
RSI 56.2 MACD 141 Volume 5,94,504 Avg Vol 1Wk 8,42,984
Low price 3,276 ₹ High price 6,261 ₹ PEG Ratio 1.14 Debt to equity 0.33
52w Index 29.1 % Qtr Profit Var 30.0 % EPS 55.4 ₹ Industry PE 29.8

📈 Chart & Trend: TRENT is trading above its 50 DMA (3,962 ₹) but below the 200 DMA (4,388 ₹), showing strong short-term momentum with medium-term resistance. RSI at 56.2 indicates healthy bullish momentum, while MACD at 141 confirms positive crossover. Bollinger Bands are moderately wide, suggesting volatility expansion with potential continuation of the uptrend.

🔑 Momentum Signals: Current price (4,145 ₹) is holding above support at 4,100–4,120 ₹. Resistance levels are seen at 4,250 ₹ and 4,350 ₹. Volume (5.9L) is below the 1-week average (8.4L), showing reduced participation but still supportive of trend continuation.

🎯 Entry Zone: 4,100–4,120 ₹ near support.

💰 Exit Zone: 4,250 ₹ (partial profit) and 4,350 ₹ (full exit).

📊 Trend Status: Consolidating with bullish bias.

Positive

  • Strong ROCE (29.5%) and ROE (29.2%) highlight profitability.
  • EPS at 55.4 ₹ supports valuation strength.
  • PEG ratio at 1.14 indicates balanced growth-adjusted valuation.
  • Price trading above 50 DMA confirms short-term bullish structure.
  • DII holdings increased (+0.82%), showing strong domestic support.

Limitation

  • High P/E (74.1) vs industry PE (29.8) indicates overvaluation.
  • Quarterly PAT declined (455 Cr. vs 660 Cr.).
  • Volume below average, limiting breakout conviction.
  • Price still below 200 DMA, capping medium-term upside.

Company Negative News

  • Sequential earnings decline despite strong fundamentals.
  • FII holdings reduced (-0.03%), showing weaker foreign confidence.

Company Positive News

  • Strong EPS and profitability metrics support long-term outlook.
  • DII inflows (+0.82%) reflect institutional confidence.
  • Quarterly profit variation +30% year-on-year shows resilience.

Industry

  • Industry PE at 29.8 suggests sector trading at moderate valuations compared to TRENT’s premium.
  • Retail sector benefiting from consumption growth and brand strength.

Conclusion

TRENT is consolidating with bullish bias supported by MACD, RSI, and price action above 50 DMA. Entry near 4,100–4,120 ₹ is favorable with exits at 4,250–4,350 ₹. While fundamentals remain strong with high ROE/ROCE and EPS, stretched valuations and reduced volume participation limit conviction. Best suited for swing trades with cautious monitoring of resistance near 200 DMA.

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