Havells, KEI: W&C stocks fall up to 16% in one week post UltraTech's entry

Mayank Jain of Share.Market by PhonePe flags key support and resistance levels for wires & cables stocks - Polycab, Havells India and KEI amid market correction post UltraTech's 'Ultravolt' launch.

Disclaimer: Views and outlook shared on the stock/stocks belong to the respective analyst/brokerages and are not endorsed by Business Standard. Readers' discretion is advised. Shares of wires & cables (W&C) related stocks have declined up to 16 per cent in the last one week after UltraTech Cement launched its W&C brand 'Ultravolt'. According to NSE stock price data, KEI was the top loser, down 16 per cent followed by Havells India, Polycab India, Apar Industries, RR Kabel and V-Guard - down 4-9 per cent each. UltraTech Cement too dipped 4 per cent. However, Finolex Cables bucked the trend, and was up 8 per cent in this period. Analysts at Nomura say that UltraTech's focus on aggressive scale-up (the company plans pan-India rollout) and market share gain are likely to remain near term headwinds for W&C listed players. Compared to the other W&C listed stocks, UltraTech Cement saw a moderate loss in recent trading sessions. Mayank Jain, market analyst at Share.Market by PhonePe flags that the stock is trading below its key moving averages, signaling mid-term weakness. 

UltraTech Cement

Current Market Price: ₹10,836 

 

 

 "UltraTech currently trades below its 20-day, 50-day, and 200-day simple moving averages (DMAs), signaling mid-term weakness. A sustained push back above key DMAs would indicate a potential shift back toward neutral-to-bullish territory," says Jain. The analyst notes that in previous occasions, buying emerged when the stock tested the ₹10,500–₹10,300 support zone; and sees resistance around ₹11,800–₹12,000. Jain adds that the price movement around the ₹10,500 support level remains crucial for establishing whether a floor forms or if further downside momentum persists. Meanwhile, Nomura in its Indian W&C report highlights that UltraTech plans to invest ₹1,800 crore with an aim to position itself as the second largest player in the wires segment by capacity in the next five years. Presently, KEI, Havells India and Polycab India command 67 per cent of the organised players market share. Nomura sees UltraTech reach up to 7 per cent market share by FY30. 

 

 Given this background, here's a technical check on these 3 big W&C players by Mayank Jain of Share.Market. 

Havells India

Current Market Price: ₹1,101 

 

 Jain believes that Havells India remains locked in a clear secondary downtrend after making a major peak above the ₹2,000 mark. The stock made a sequence of lower highs and lower lows, staying well beneath its key short-term and long-term moving averages. ALSO READ | Elevated oil prices to weigh on OMCs after sequential gains in Q2 Currently, the stock is testing its multi-month support zone; with strong historical support visible around the ₹1,050–₹1,000, says the analyst. On the upside, he sees resistance located at ₹1,220–₹1,300 zone. 

KEI Industries

Current Market Price: ₹4,467 

 

 "KEI Industries demonstrates a prolonged primary uptrend from lower levels, though it is currently undergoing a sharp technical retracement after reaching highs above ₹5,800," notes Jain. The analyst sees immediate support around ₹4,000–₹4,200 region, coinciding with  prior price consolidation nodes. Resistance on the upside is situated around ₹5,000–₹5,200 levels. "The stock tested and failed long-term structural support at its 200-DMA. The price action between current levels and the ₹4,000 support zone will determine whether the primary uptrend resumes or if the stock enters a deeper price consolidation phase," explains Jain. 

Polycab India

Current Market Price: ₹8,150 

 

 Polycab India exhibits a structural pullback following a strong rally that topped out near ₹10,000-mark, notes the analyst. The stock is currently testing the 200-DMA support, while trading below short-term averages. Jain sees key technical support situated between ₹8,300–₹8,000, and resistance around ₹8,900–₹9,100 range. Analyst Disclaimer: Investments in securities are subject to market risks. Read all the related documents carefully before investing. All investors are advised to conduct their own independent research into investment strategies before making an investment decision. Past performance does not guarantee future returns. The securities are quoted as an example and not as a recommendation. Registration granted by SEBI, enlistment with BSE and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. This article and its images are for informational purposes only and should not be taken as a recommendation. PhonePeWealth Broking Private Limited is a member of NSE & BSE with SEBI Regn. No.: INZ000302639,  BSE RA Enlistment Number: 5887, Depository Participant of CDSL Depository with SEBI Regn. No.: IN-DP-696-2022, Research Analyst– INH000013387 and ARN- 187821. Member id: BSE - 6756 NSE 90226. CIN U65990KA2021PTC146954. Registered Office Address: Office - 2, Floor 3, Wing A, Block A, Salarpuria Softzone, Bellandur Village, Varthur Hobli, Outer Ring Road, Bangalore South, Bangalore, Karnataka – 560103.