SAPPHIRE - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.9

Technical Analysis Report for Sapphire Foods Ltd (SAPPHIRE)

• Trend Status: Reversing from downtrend, but weak momentum
• Moving Averages: Price below both 50 DMA (₹302) and 200 DMA (₹314) — bearish alignment
• RSI: 55.7 — neutral zone, no strong momentum
• MACD: Negative at -4.27 — bearish crossover, weak trend strength
• Bollinger Bands: Price near lower band — oversold but not rebounding
• Volume: 2.4x above weekly average — high activity, possibly driven by sell-off

Entry & Exit Zones

• Support Levels: ₹270 (recent swing low), ₹242 (52-week low)
• Resistance Levels: ₹302 (DMA 50), ₹314 (DMA 200), ₹330 (gap zone)
• Optimal Entry: ₹270–₹280 (on reversal confirmation)
• Optimal Exit: ₹310–₹330 (if bounce sustains)

Positive

• Volume surge — indicates strong interest, possibly bottom fishing
• Book value of ₹38.7 — decent asset backing

Limitation

• Price below key moving averages — weak technical structure
• Negative MACD — bearish momentum
• Debt-to-equity ratio of 1.04 — high leverage risk

Company Negative News

• Quarterly PAT dropped from ₹-3.40 Cr. to ₹-17.3 Cr. — deepening losses
• EPS at ₹-0.65 — negative earnings
• FII and DII holdings declined — reduced institutional confidence

Company Positive News

• None reported in current data — company facing financial stress

Industry

• Quick-service restaurant (QSR) sector — long-term growth potential but cyclical risks
• Industry P/E of 485 — extremely high, suggests speculative valuations

Conclusion

Sapphire Foods Ltd is currently reversing from a prolonged downtrend but lacks strong technical momentum. While volume suggests interest, negative earnings and weak MACD signal caution. Traders may consider speculative entries near ₹270 with exits around ₹330, but only on confirmation of reversal. Risk management is critical due to financial instability and institutional outflows.