Technical indicators suggest that the downtrend may be nearing an end. The analyst recommends a buy-on-dips approach after the stock shed nearly 20% in one year.
Recent price action suggests that Siemens may be entering a correction-reversal phase after the stock experienced volatility over the last six months, driven by news developments, said SEBI-registered analyst Deepak Pal.
Siemens has been struggling for the past year, with the shares falling nearly 20% during the period. The downtrend was triggered by management commentary regarding a slowdown in private capital expenditure in December 2024, as well as BofA downgrading the stock due to concerns about expensive valuations and growth.
In April, Siemens stock experienced a significant impact when the demerger of the company’s energy business led to a 50% correction on the ex-date, prompting a sharp adjustment in its value, Pal said.
Currently, the stock is trading below its 14, 55, and 200-day exponential moving averages, while both moving average convergence/divergence (MACD) and relative strength index (RSI) indicate a short-term negative trend, Pal said.
A buy-on-dips strategy can be considered with a stop loss at ₹3,075, as long as the stock breaks above its 14-day EMA. If this condition is met, an upside target of ₹3,275–₹3,300 could be expected in the near term, Pal said.
Siemens India maintains a strong financial position, with low debt and steadily improving operating margins. The energy business demerger is expected to enhance its focus on smart infrastructure and digital technologies, improving its long-term prospects, the analyst said.
Year-to-date (YTD), the stock has fallen 6.9%.
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