SAPPHIRE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.9
| Stock Code | SAPPHIRE | Market Cap | 5,544 Cr. | Current Price | 173 ₹ | High / Low | 368 ₹ |
| Book Value | 38.7 ₹ | Dividend Yield | 0.00 % | ROCE | 5.11 % | ROE | 1.50 % |
| Face Value | 2.00 ₹ | DMA 50 | 203 ₹ | DMA 200 | 255 ₹ | Chg in FII Hold | -2.09 % |
| Chg in DII Hold | 0.29 % | PAT Qtr | 0.22 Cr. | PAT Prev Qtr | -17.3 Cr. | RSI | 34.3 |
| MACD | -12.6 | Volume | 4,80,815 | Avg Vol 1Wk | 15,83,950 | Low price | 154 ₹ |
| High price | 368 ₹ | Debt to equity | 1.04 | 52w Index | 8.98 % | Qtr Profit Var | -93.6 % |
| EPS | -1.10 ₹ | Industry PE | 65.3 |
📊 Chart & Trend Analysis: SAPPHIRE is trading at ₹173, well below its 50 DMA (₹203) and 200 DMA (₹255), indicating strong bearish momentum. RSI at 34.3 suggests the stock is nearing oversold territory. MACD at -12.6 confirms negative crossover. Bollinger Bands show price near the lower band, signaling weakness and possible support around ₹154–₹160.
📈 Volume Trends: Current volume (4,80,815) is significantly lower than the 1-week average (15,83,950), showing reduced participation and weak investor interest.
🔑 Momentum Signals: Short-term momentum is weak, with downside risk. A rebound is possible only if price sustains above ₹170 with stronger volumes.
💰 Entry Zone: ₹160–₹170 (near support).
📉 Exit Zone: ₹200–₹210 (resistance near 50 DMA).
📌 Trend Status: The stock is consolidating with bearish bias, showing no clear reversal signs yet.
Positive
- Book value of ₹38.7 provides some asset backing.
- DII holdings increased by 0.29%, showing mild domestic institutional support.
- Debt-to-equity ratio at 1.04, moderate but manageable.
Limitation
- Low ROE (1.50%) and ROCE (5.11%) reflect weak efficiency.
- No dividend yield, limiting income for investors.
- Trading far below both 50 DMA and 200 DMA.
Company Negative News
- PAT dropped sharply from ₹-17.3 Cr. loss to just ₹0.22 Cr. profit, showing instability.
- EPS remains negative at ₹-1.10.
- FII holdings decreased by 2.09%, showing reduced foreign investor confidence.
Company Positive News
- Turned profitable in the latest quarter after losses.
- Stock has delivered 8.98% return over the past year despite volatility.
Industry
- Industry PE at 65.3, showing premium valuations across the sector.
- Consumer and retail sector remains competitive but cyclical.
Conclusion
⚖️ SAPPHIRE is consolidating with bearish undertones, trading well below moving averages. Optimal strategy: accumulate cautiously near ₹160–₹170 support and consider profit booking around ₹200–₹210 resistance. Long-term investors should monitor profitability trends and weak ROE/ROCE before committing heavily, as fundamentals remain fragile despite recent turnaround.