SAIL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | SAIL | Market Cap | 83,079 Cr. | Current Price | 201 ₹ | High / Low | 210 ₹ |
| Stock P/E | 22.5 | Book Value | 141 ₹ | Dividend Yield | 0.80 % | ROCE | 7.84 % |
| ROE | 6.48 % | Face Value | 10.0 ₹ | DMA 50 | 177 ₹ | DMA 200 | 152 ₹ |
| Chg in FII Hold | 0.47 % | Chg in DII Hold | 0.56 % | PAT Qtr | 1,912 Cr. | PAT Prev Qtr | 442 Cr. |
| RSI | 66.2 | MACD | 7.65 | Volume | 2,68,26,586 | Avg Vol 1Wk | 3,31,67,653 |
| Low price | 118 ₹ | High price | 210 ₹ | PEG Ratio | 0.75 | Debt to equity | 0.55 |
| 52w Index | 90.5 % | Qtr Profit Var | 59.3 % | EPS | 7.83 ₹ | Industry PE | 19.0 |
📊 Chart Analysis: SAIL is trading at ₹201, close to its 52-week high of ₹210. The price is well above both the 50 DMA (₹177) and 200 DMA (₹152), indicating strong bullish momentum. RSI at 66.2 suggests the stock is approaching overbought territory. MACD at 7.65 remains positive, confirming upward momentum. Bollinger Bands show price near the upper band, signaling strong buying pressure. Current volume (2.68 Cr.) is slightly below the 1-week average (3.31 Cr.), suggesting mild cooling in participation.
📈 Momentum Signals: Short-term momentum is bullish, supported by positive MACD and strong price action above moving averages. RSI indicates caution as the stock nears overbought levels.
💹 Support & Resistance: Strong support lies near ₹177 (50 DMA) and ₹152 (200 DMA). Immediate resistance is at ₹210 (recent high). Optimal entry zone: ₹185–₹190. Exit zone: ₹205–₹210.
🔄 Trend Status: The stock is currently trending upward with strong momentum, though near-term consolidation may occur if resistance at ₹210 holds.
Positive
- ✅ PAT surged from ₹442 Cr. to ₹1,912 Cr., showing strong earnings growth.
- ✅ EPS at ₹7.83 supports valuation strength.
- ✅ PEG ratio of 0.75 suggests undervaluation relative to growth.
- ✅ Debt-to-equity ratio of 0.55 indicates healthy leverage levels.
Limitation
- ⚠️ P/E of 22.5 is higher than industry P/E of 19.0, suggesting premium valuation.
- ⚠️ ROE at 6.48% and ROCE at 7.84% remain modest compared to peers.
- ⚠️ Dividend yield of 0.80% is relatively low.
Company Negative News
- 📉 Valuation stretched compared to industry average.
- 📉 RSI near 66.2 indicates risk of short-term correction.
Company Positive News
- 📈 Quarterly profit growth of 59.3% highlights strong operational performance.
- 📈 FII holdings increased by 0.47% and DII holdings by 0.56%, showing investor confidence.
Industry
- 🏭 Steel sector supported by infrastructure demand and government spending.
- 🏭 Industry P/E at 19.0 reflects moderate valuations compared to broader markets.
Conclusion
📌 SAIL is in a strong uptrend, trading near its 52-week high with bullish signals from MACD and moving averages. Entry around ₹185–₹190 with exit near ₹205–₹210 offers a favorable setup, though caution is advised due to overbought RSI levels. Fundamentals show improving profitability and healthy leverage, making the stock attractive for momentum-driven investors.
For deeper insights, you could explore a steel sector outlook or compare SAIL with peers through a valuation analysis.