SARDAEN - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.7

📈 Chart & Trend Analysis:

SARDAEN is trading at ₹512, slightly below its 50 DMA (₹514) but above its 200 DMA (₹497), indicating mixed momentum. RSI at 53.7 suggests neutral strength, neither overbought nor oversold. MACD at -2.63 is negative, showing mild bearish undertone. Price action is mid-range between its 52-week high (₹640) and low (₹397). Bollinger Bands suggest moderate volatility, with price leaning toward consolidation. Current volume (3.46 lakh) is below the weekly average (4.61 lakh), showing reduced participation.

🔑 Momentum Signals:

- RSI near 54 indicates balanced momentum.

- MACD negative, signaling mild bearish pressure.

- Price above 200 DMA but struggling near 50 DMA.

- Lower-than-average volume suggests cautious sentiment.

🎯 Entry & Exit Zones:

- Support: ₹497 – ₹500 (near 200 DMA).

- Resistance: ₹514 – ₹520 (near 50 DMA).

- Optimal Entry: ₹500 – ₹510 range on dips.

- Exit/Profit Booking: ₹520 – ₹530 unless breakout occurs.

📊 Trend Status:

The stock is consolidating with mild bearish undertones. A breakout above ₹520 could confirm trend continuation, while failure may lead to sideways movement.

Positive

• Price trading above 200 DMA, showing medium-term strength.
• Quarterly profit variation of 95.5% YoY indicates strong growth momentum.
• EPS at ₹26.4 reflects solid earnings base.
• Low debt-to-equity ratio (0.23) ensures financial stability.
• ROCE (16.6%) and ROE (12.9%) show healthy efficiency.

Limitation

• Price struggling near 50 DMA, showing short-term weakness.
• MACD negative, signaling bearish undertone.
• PEG ratio at -6.33 indicates valuation concerns.
• Dividend yield at 0.29% is modest.

Company Negative News

• Quarterly PAT declined to ₹240 Cr from ₹386 Cr.
• DII holdings reduced (-0.94%), showing weaker domestic investor confidence.

Company Positive News

• FII holdings increased (+0.31%), reflecting foreign investor interest.
• Strong EPS and profitability metrics support valuation.
• Stock trading well above its 52-week low (₹397), showing resilience.

Industry

• Industry P/E at 20.9, SARDAEN trades close to fair valuation (P/E 19.3).
• Sector showing cyclical demand recovery.
• Peers trading at similar multiples, making SARDAEN reasonably valued.

Conclusion

⚖️ SARDAEN is consolidating with mild bearish undertones. Entry near ₹500–₹510 offers favorable risk-reward, while resistance at ₹520–₹530 is critical for breakout confirmation. Strong fundamentals support medium-term stability, but short-term weakness and declining profits warrant cautious positioning.