Kirloskar Oil Engines - Swing TradeKirloskar Oil Engines Limited - Technical Analysis Report
Current Market Price: 1,005.70
MARKET BIAS: BULLISH RECOVERY IN PROGRESS
Kirloskar Oil Engines is currently trading at 1,005.70, showing signs of bottoming out after a significant correction from its all-time highs of ₹1,450+. The stock is now forming a potential reversal pattern.
KEY TECHNICAL OBSERVATIONS:
1. Major Support Zone - HOLDING STRONG ✅
The stock has found solid support in the 900-950 zone, which coincides with:
- Multiple moving average convergence (EMA 20/50/100/200)
- Previous resistance-turned-support from mid-2025
- Psychological round number support at 900
The price has bounced decisively from this zone, suggesting accumulation by institutional investors.
2. Consolidation Rectangle Pattern (Daily/Weekly)
A clear *rectangular consolidation box* :
- Upper Range: 1,016 - 1,050
- Lower Range: 900 - 950
This sideways movement indicates Distribution completion and potential energy buildup for the next directional move.
All major EMAs are converging in the 890-910 zone, creating a strong support cluster.
TARGET ANALYSIS:
Immediate Resistance Targets:
Target 1: 1,180 - 1,200 (First Major Resistance)
- Previous consolidation high from December 2025
- 61.8% Fibonacci retracement of the recent decline
Target 2: 1,334 (Secondary Target)
- Major swing high marked on weekly chart
- Psychological resistance zone
Target 3: 1,450 (Extended Target)
- Previous all-time high zone
- Final resistance before new highs
Critical Support Levels:
- 1,000: Immediate psychological support
- 900-920: MAJOR SUPPORT (EMA cluster + pattern base)
BULLISH BREAKOUT (Higher Probability - 65%)**
CONCLUSION:
Kirloskar Oil Engines is at a Critical juncture with strong technical setup favoring a Bullish breakout. The stock has:
- ✅ Successfully held major support zones
- ✅ Maintained position above all key moving averages
- ✅ Formed higher lows indicating accumulation
- ✅ Built a strong base for the next upward move
Disclaimer: This analysis is for educational purposes only. Please consult with your financial advisor before making investment decisions. Past performance does not guarantee future results.
Kirloskaroil
Kirloskar (D): Bullish, Awaiting Breakout ConfirmationThis is a "wait and watch" scenario. The stock is at a critical decision point. A massive fundamental catalyst (record-breaking earnings) has met a powerful technical resistance. The price-action of the next few days will be crucial.
🚀 1. The Fundamental Catalyst
Today's explosive move was fundamentally driven. The stock gapped up and surged +11.98% on 11.37 Million in volume as a direct response to its record-breaking Q2 2026 earnings (44% profit growth). This provides a strong, non-speculative a to the bullish case.
📈 2. The Long-Term Context (The Setup)
- The 2024-2025 Correction: After its ATH in July 2024, the stock entered a downtrend, which found its bottom in February 2025.
- The Recovery: Since then, the stock has been in a slow, methodical uptrend, forming a bullish structure of Higher Lows .
- Drying Volume: Volume had dried up during this slow uptrend, a classic sign of accumulation before a major move.
🎯 3. Today's Action (The "Battle at Resistance")
The stock's upward progress was blocked by a dual resistance :
1. A short-term horizontal resistance (since Jan 2025).
2. A long-term angular resistance (from the Jul 2024 ATH).
Today, the stock's gap-up broke the short-term horizontal resistance intraday , but by the market's close, sellers pushed it back down. It failed to close above this level . This "rejection" or "failed close" signals that a significant supply of sellers (profit-takers) exists at this exact point, despite the great news.
📊 4. Confluence of Bullish Indicators
Despite today's rejection, the underlying trend is powerfully bullish:
- RSI: The Relative Strength Index is rising on the Daily, Weekly, and Monthly charts .
- EMAs: The short-term Exponential Moving Averages are in a "PCO" (Price Crossover) state on all three timeframes .
This "trifecta" of bullishness across all timeframes suggests today's rejection is likely a pause, not a top.
🧠 5. Future Scenarios & Key Levels to Watch
The next few days will define the trend.
🐂 The Bullish Case (Confirmation)
- Trigger: We need to see a decisive daily close above the horizontal resistance, followed by a break of the main angular trendline.
- Target: This would confirm the breakout and open the path to the ₹1,255 level.
🐻 The Bearish Case (Rejection)
- Trigger: If today's failed close is a bull trap and the momentum is lost.
- Target: The price will likely fall to retest the primary support level at ₹890 .
KIRLOSENG: Post-Results Breakout and Consolidation. F&P PatternNSE:KIRLOSENG : How This Hidden Gem Could Be Your Next Big Winner After Post-Results Breakout and Consolidation Let's Analyze in my "Chart of the Week"
Price Action:
- The stock shows a classic recovery pattern from March 2025 lows around ₹590-600
- Current price at ₹914.85 represents a significant 52% recovery from the March bottom
- The stock has been forming higher lows since March, indicating underlying strength
- Recent breakout above the ₹850 resistance level with strong volume confirmation
Volume Spread Analysis:
- Volume spike during the recent breakout suggests institutional participation
- The post-results reaction shows a healthy volume of 724.08K against a 20-day average of 5.73M
- Volume patterns indicate an accumulation phase during the consolidation period from April to June
Base Formation:
- Primary base established between ₹590-650 (March 2025 lows)
- Secondary base formed around the ₹750-800 level during April-May consolidation
- Current base being built around ₹880-920 after the recent breakout
Support and Resistance Levels:
Key Support Levels:
- Immediate support: ₹880-890 (recent breakout level)
- Strong support: ₹830-850 (previous resistance turned support)
- Major support: ₹780-800 (secondary base level)
- Ultimate support: ₹590-650 (primary base)
Resistance Levels:
- Immediate resistance: ₹950-970
- Major resistance: ₹1,000-1,020 (psychological level)
- Long-term resistance: ₹1,100-1,150 (previous highs from late 2024)
- Ultimate target: ₹1,400+ (all-time high region)
Technical Patterns:
Flag and Pole Pattern:
- The chart clearly shows a flag and pole formation
- The flag represents the consolidation phase from May to June 2025
- Recent breakout confirms the pattern completion with an upward trajectory
Ascending Triangle:
- The stock has formed an ascending triangle pattern with higher lows and consistent resistance around ₹850
- The breakout above this level validates the bullish continuation pattern
Post-Results Reaction:
- Kirloskar Oil Engines shares settled slightly, trading at Rs 803.75, representing a 9.36% increase, while the BSE Sensex was up by 0.25%.
- The positive reaction to results indicates market confidence in the company's performance
Trade Setup:
Entry Strategy:
- Primary entry: ₹900-920 (current levels on any dip)
- Secondary entry: ₹880-890 (on pullback to support)
- Aggressive entry: ₹930-950 (on breakout above current resistance)
Entry Levels:
- Conservative traders: Wait for pullback to ₹880-890 support
- Moderate traders: Enter at current levels around ₹910-920
- Aggressive traders: Enter on a breakout above ₹950
Exit Strategy:
Target Levels:
- Target 1: ₹1,000 (8-10% upside)
- Target 2: ₹1,100 (18-20% upside)
- Target 3: ₹1,250 (35-40% upside)
- Ultimate target: ₹1,400+ (50%+ upside)
Exit Timing:
- Book 30% profits at Target 1
- Book 40% profits at Target 2
- Hold the remaining 30% for the ultimate target with a trailing stop loss
Risk Management:
Stop-Loss Levels:
- Conservative stop-loss: ₹850 (6-7% downside)
- Moderate stop-loss: ₹830 (8-9% downside)
- Aggressive stop-loss: ₹800 (11-12% downside)
Position Sizing:
- Risk per trade: Maximum 2% of portfolio
- Position size calculation: Portfolio value × 2% ÷ (Entry price - Stop loss)
- For ₹1,00,000 portfolio with entry at ₹910 and stop at ₹850: Position size = ₹2,000 ÷ ₹60 = 33 shares
Sectoral Backdrop:
Industrial Machinery Sector:
- The industrial machinery sector has been showing resilience amid economic recovery
- Infrastructure push by the government supports demand for engines and pumps
- Agricultural mechanization trends favour companies like NSE:KIRLOSENG
Market Position:
- The company caters to the agriculture, ... Clients (Marine, Defence, etc), After Sales Support, Retail Channel – Tractor spares, Oil, Batteries.
- Diversified revenue streams provide stability across economic cycles
Fundamental Backdrop:
Financial Performance:
- Netprofit is up for the last 2 quarters, 68 Cr → 127 Cr (in ₹)
- Revenue is up for the last 2 quarters, 1454 Cr → 1753 Cr (in ₹)
- As of 31-Mar-2025, Kirloskar Oil Engines has a trailing 12-month revenue of 6349 Cr
Market Valuation:
- Its current market cap is 13,289 Cr with 14.5 Cr shares.
- Stock is trading at 4.30 times its book value
- Promoter holding has decreased over the last 3 years: -18.3%
Growth Outlook:
- The B2B business grew 5 per cent year on year, and the B2C business also witnessed a double-digit growth of 14 per cent year on year
- Strong positioning in agriculture and industrial segments provides sustainable growth prospects
- The final dividend of Rs 4 per equity Share indicates management confidence
My Take:
Investment Rationale:
- Technical breakout supported by improving fundamentals
- Diversified business model reduces concentration risk
- Strong balance sheet with consistent profitability
- Attractive valuation after the recent correction from highs
The combination of technical breakout, improving fundamentals, and supportive sectoral trends makes NSE:KIRLOSENG an attractive investment opportunity for medium to long-term investors with appropriate risk management measures in place.
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Disclaimer: "I am not a SEBI REGISTERED RESEARCH ANALYST AND INVESTMENT ADVISER."
This analysis is intended solely for informational and educational purposes and should not be interpreted as financial advice. It is advisable to consult a qualified financial advisor or conduct thorough research before making investment decisions.



