SARDAEN - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.5

Technical Analysis Report for Sarda Energy & Minerals Ltd (SARDAEN)

• Trend Status: Reversing from recent highs, testing support zones
• Moving Averages: Price below 50 DMA (₹550) but above 200 DMA (₹495) — mixed signals
• RSI: 42.0 — weak momentum, approaching oversold territory
• MACD: Negative at -7.89 — bearish crossover, trend weakening
• Bollinger Bands: Price near lower band — potential for technical bounce
• Volume: Below weekly average — low conviction in current price action

Entry & Exit Zones

• Support Levels: ₹495 (DMA 200), ₹475 (trendline), ₹460 (swing low)
• Resistance Levels: ₹550 (DMA 50), ₹580 (minor resistance), ₹640 (52-week high)
• Optimal Entry: ₹500–₹510 (on confirmation of support)
• Optimal Exit: ₹580–₹630 (if reversal sustains)

Positive

• Strong ROCE (16.6%) and ROE (12.9%) — efficient capital deployment
• Quarterly PAT surged from ₹115 Cr. to ₹386 Cr. — robust earnings growth
• Price above 200 DMA — long-term bullish structure intact

Limitation

• MACD negative — bearish momentum signal
• Volume below average — weak participation
• PEG ratio of -7.50 — poor growth-adjusted valuation

Company Negative News

• DII holding declined by 0.94% — reduced domestic institutional interest

Company Positive News

• FII holding increased by 0.31% — foreign investor confidence
• EPS of ₹23.1 — strong earnings base

Industry

• Metals and mining sector — cyclical but currently supported by global demand
• Industry P/E of 22.4 — SARDAEN trades in line with sector average

Conclusion

Sarda Energy & Minerals Ltd is currently reversing from recent highs and testing support near its 200 DMA. While fundamentals remain strong, technical indicators suggest caution. Traders may consider entries near ₹500 with exits around ₹630, keeping a close watch on volume recovery and MACD reversal.