SAREGAMA - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.2

Technical Analysis Report for Saregama Ltd (SAREGAMA)

• Trend Status: Reversing from recent highs, testing support zones
• Moving Averages: Price below both 50 DMA (₹471) and 200 DMA (₹493) — bearish alignment
• RSI: 41.8 — weak momentum, approaching oversold territory
• MACD: Negative at -5.41 — bearish crossover, trend weakening
• Bollinger Bands: Price near lower band — potential for technical bounce
• Volume: Slightly below weekly average — low conviction in current price action

Entry & Exit Zones

• Support Levels: ₹440 (recent swing low), ₹417 (52-week low)
• Resistance Levels: ₹471 (DMA 50), ₹493 (DMA 200), ₹520 (gap zone)
• Optimal Entry: ₹440–₹455 (on confirmation of support)
• Optimal Exit: ₹490–₹520 (if reversal sustains)

Positive

• Strong ROCE (18.0%) and ROE (13.4%) — efficient capital deployment
• PEG ratio of 3.99 — reasonable growth-adjusted valuation
• Debt-to-equity ratio of 0.00 — zero leverage risk

Limitation

• MACD negative — bearish momentum signal
• Price below key moving averages — weak technical structure
• Volume slightly below average — lack of strong participation

Company Negative News

• Quarterly PAT declined from ₹55.5 Cr. to ₹40.2 Cr. — margin pressure
• DII holding declined by 0.07% — slight drop in domestic institutional interest

Company Positive News

• FII holding increased by 0.14% — foreign investor confidence
• EPS of ₹10.7 — solid earnings base

Industry

• Media and entertainment sector — cyclical with digital growth potential
• Industry P/E of 44.3 — Saregama trades slightly below sector average

Conclusion

Saregama Ltd is currently reversing from recent highs and testing support near ₹440. While fundamentals remain solid, technical indicators suggest caution. Traders may consider entries near ₹440 with exits around ₹520, keeping a close watch on volume recovery and MACD reversal.