SARDAEN - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | SARDAEN | Market Cap | 20,845 Cr. | Current Price | 592 ₹ | High / Low | 640 ₹ |
| Stock P/E | 23.1 | Book Value | 181 ₹ | Dividend Yield | 0.25 % | ROCE | 16.6 % |
| ROE | 12.9 % | Face Value | 1.00 ₹ | DMA 50 | 549 ₹ | DMA 200 | 517 ₹ |
| Chg in FII Hold | -0.04 % | Chg in DII Hold | 0.39 % | PAT Qtr | 163 Cr. | PAT Prev Qtr | 240 Cr. |
| RSI | 59.2 | MACD | 18.5 | Volume | 4,35,991 | Avg Vol 1Wk | 11,62,842 |
| Low price | 402 ₹ | High price | 640 ₹ | PEG Ratio | -7.56 | Debt to equity | 0.23 |
| 52w Index | 79.7 % | Qtr Profit Var | -13.8 % | EPS | 25.7 ₹ | Industry PE | 22.9 |
📊 Chart & Indicators: SARDAEN is trading at ₹592, above both 50 DMA (₹549) and 200 DMA (₹517), confirming strong bullish momentum. RSI at 59.2 indicates healthy momentum without overbought risk, while MACD at 18.5 shows strong positive momentum. Price is consolidating between support (~₹580–₹585) and resistance (~₹610–₹620). Volume (4.35L) is below weekly average (11.6L), suggesting reduced participation despite positive trend.
🎯 Entry/Exit Zones:
- Buy Zone: ₹585–₹595 (near support)
- Stop-Loss: ₹575
- Exit Levels: ₹610–₹620 (short-term resistance), ₹630–₹640 (major resistance near recent highs)
📈 Trend Status: Uptrend with consolidation; price above moving averages, RSI supportive, and MACD strong. Momentum remains positive, though volume weakness could limit upside.
✅ Positive
- Price above both 50 DMA and 200 DMA, confirming uptrend
- Strong EPS at ₹25.7
- Healthy ROCE (16.6%) and ROE (12.9%)
- DII holdings increased (+0.39%)
- 52-week index gain of 79.7%
⚠️ Limitation
- Quarterly PAT declined (₹240 Cr → ₹163 Cr, -13.8%)
- Volume below weekly average, showing reduced participation
- PEG ratio -7.56 indicates poor growth-adjusted valuation
- FII holdings slightly reduced (-0.04%)
📉 Company Negative News
- Sequential profit decline impacting sentiment
- Valuation slightly above industry PE (23.1 vs 22.9)
- Weak trading volume despite positive technicals
📊 Company Positive News
- Strong technical momentum with RSI and MACD supportive
- Stable fundamentals with low debt-to-equity (0.23)
- Consistent dividend yield at 0.25%
🏦 Industry
- Industry PE at 22.9, aligned with SARDAEN’s valuation
- Steel and alloy sector demand remains strong
- Global commodity cycles influencing margins
📝 Conclusion
SARDAEN is in a strong uptrend with price above key moving averages, supported by positive RSI and MACD. However, declining profits and weak volume participation limit upside potential. Best suited for swing trades with entry near ₹585–₹595 and exit around ₹610–₹620; long-term investors should monitor earnings growth before fresh accumulation.
Would you like me to also generate a long-term investment rating (1–5) for SARDAEN, so you can directly compare its short-term technical momentum with its fundamental outlook?