SAIL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.8

Technical Analysis Report for Steel Authority of India Ltd (SAIL)

• Trend Status: Trending upward with moderate momentum
• Moving Averages: Price above both 50 DMA (₹131) and 200 DMA (₹126) — bullish alignment
• RSI: 58.6 — neutral to bullish zone, room for upside
• MACD: Positive at 1.08 — mild bullish crossover
• Bollinger Bands: Price near upper band — potential continuation with volatility
• Volume: Below weekly average — momentum slowing, needs confirmation

Entry & Exit Zones

• Support Levels: ₹131 (DMA 50), ₹126 (DMA 200), ₹120 (trendline)
• Resistance Levels: ₹143 (recent high), ₹148 (projected breakout zone)
• Optimal Entry: ₹130–₹134 (on pullback or consolidation)
• Optimal Exit: ₹142–₹148 (if momentum sustains)

Positive

• MACD and RSI indicate bullish momentum
• Price action above key moving averages — trend strength intact
• EPS of ₹5.85 — consistent earnings base
• DII holding increased by 0.80% — strong domestic institutional support

Limitation

• Volume below average — weak participation
• PEG ratio of -0.51 — poor growth-adjusted valuation
• ROCE (6.73%) and ROE (4.38%) — below industry benchmarks

Company Negative News

• Quarterly PAT declined from ₹685 Cr. to ₹645 Cr. — sequential drop

Company Positive News

• FII holding increased by 0.11% — foreign investor confidence
• 52-week index at 86.1% — strong recovery from lows

Industry

• Steel and metals sector — cyclical with global demand sensitivity
• Industry P/E of 22.4 — SAIL trades slightly below sector average

Conclusion

SAIL is currently trending upward with bullish technical indicators and institutional support. While volume and valuation metrics suggest caution, the price action above key moving averages and improving RSI support further upside. Traders may consider entries near ₹130 with exits around ₹148, monitoring volume and earnings stability for sustained momentum.