SAREGAMA - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.9

📈 Chart & Trend Analysis:

SAREGAMA is trading at ₹352, below both its 50 DMA (₹404) and 200 DMA (₹463), indicating a bearish trend. RSI at 33.9 suggests oversold conditions, hinting at potential short-term rebound opportunities. MACD at -14.2 is negative, confirming bearish momentum. Price is near its 52-week low (₹340), showing heavy downside pressure. Bollinger Bands indicate the stock is hugging the lower band, reflecting persistent weakness. Current volume (10.3 lakh) is slightly below the weekly average (12.0 lakh), suggesting reduced participation.

🔑 Momentum Signals:

- RSI oversold near 34, potential for technical bounce.

- MACD negative, confirming bearish continuation.

- Price below both DMAs signals weakness.

- Volume slightly below average, showing cautious sentiment.

🎯 Entry & Exit Zones:

- Support: ₹340 – ₹345 (near 52-week low).

- Resistance: ₹404 – ₹410 (near 50 DMA).

- Optimal Entry: ₹345 – ₹355 range for rebound trades.

- Exit/Profit Booking: ₹400 – ₹410 unless breakout occurs.

📊 Trend Status:

The stock is reversing downward with strong bearish signals. Oversold RSI may trigger a short-term relief rally, but overall trend remains weak.

Positive

• Dividend yield at 1.31% provides income return.
• ROCE (18.0%) and ROE (13.4%) show healthy efficiency.
• EPS at ₹10.6 reflects earnings strength.
• Debt-to-equity ratio at 0.00 ensures financial stability.

Limitation

• Price trading below both 50 DMA and 200 DMA.
• MACD negative, signaling bearish undertone.
• PEG ratio at 3.11 indicates expensive valuation relative to growth.
• Quarterly profit variation at -2.87% shows weak momentum.

Company Negative News

• Quarterly PAT declined to ₹47.6 Cr from ₹40.2 Cr, showing weak growth.
• DII holdings reduced (-0.07%), reflecting weaker domestic investor confidence.
• Stock trading near 52-week low (₹340), showing heavy downside pressure.

Company Positive News

• FII holdings increased (+0.14%), showing foreign investor interest.
• Dividend yield at 1.31% supports investor returns.
• Strong ROCE and ROE metrics compared to peers.

Industry

• Industry P/E at 39.2, SAREGAMA trades at a discount (P/E 33.2).
• Sector offers premium valuations, highlighting potential recovery opportunities.
• Peers may be performing better, making SAREGAMA relatively weaker in current cycle.

Conclusion

⚠️ SAREGAMA is in a bearish reversal phase with oversold RSI suggesting possible short-term bounce. Entry near ₹345–₹355 may be considered for rebound trades, while resistance at ₹404–₹410 is critical. Weak fundamentals and declining profits warrant caution, making this a high-risk trade despite potential technical recovery.