SBICARD - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.1

📊 Chart Patterns: SBICARD is trading near its 50 DMA (874 ₹) and slightly above its 200 DMA (861 ₹). Current price (872 ₹) reflects indecision, with the stock consolidating after a decline from its 52-week high (1,027 ₹). The broader pattern shows sideways consolidation with mild bearish bias.

📈 Moving Averages: Price ≈ 50 DMA and > 200 DMA → neutral alignment, suggesting consolidation with no clear breakout yet.

📉 RSI: 41.5 → weak momentum, close to oversold territory, suggesting possible rebound if support holds.

📉 MACD: -8.16 → bearish crossover, confirming short-term weakness.

📊 Bollinger Bands: Price near mid-to-lower band, indicating consolidation with risk of further downside.

📊 Volume Trends: Current volume (9,91,864) is slightly above 1-week average (8,19,534) → moderate participation, showing cautious trading activity.

📍 Support Levels: 861 ₹ (DMA 200), 840 ₹, and strong base near 800 ₹.

📍 Resistance Levels: 874 ₹ (DMA 50), 900 ₹, and 950 ₹.

🔎 Trend: The stock is consolidating between 861–874 ₹. A breakdown below 861 ₹ could trigger reversal toward 840–800 ₹, while a breakout above 900 ₹ may lead to short-term recovery momentum.

Positive

• 📈 EPS at 20.2 ₹ supports earnings strength.
• 📊 ROE (14.8%) shows decent shareholder returns.
• 📊 DII holdings increased (+0.26%), showing domestic investor confidence.
• 📊 Quarterly profit variation (+9.98% YoY) indicates growth momentum.

Limitation

• ⚠️ Price trading near support levels with weak momentum.
• ⚠️ High P/E ratio (43.3) compared to industry PE (21.2) → valuation premium.
• ⚠️ PEG ratio (7.42) suggests expensive growth expectations.
• ⚠️ Debt-to-equity ratio at 3.33 indicates high leverage risk.

Company Negative News

• 📉 FII holdings declined (–0.13%), showing reduced foreign investor confidence.
• 📉 PAT fell sequentially from 556 Cr. to 445 Cr.
• 📉 Technical indicators (MACD negative, RSI weak) confirm bearish momentum.

Company Positive News

• 📈 Quarterly profit growth (+9.98% YoY).
• 📊 Price holding above 200 DMA, showing resilience.
• 📊 Domestic institutional investors increasing stake.

Industry

• 🏦 Financial services sector PE at 21.2, much lower than SBICARD’s PE (43.3), suggesting overvaluation relative to peers.
• 📊 Industry supported by rising credit card adoption and consumer spending growth.

Conclusion

🔎 SBICARD is consolidating with bearish short-term signals (RSI weak, MACD negative, price near support). Optimal entry zone lies near 861–872 ₹ if support holds, while exit/resistance zone is 900–950 ₹. Long-term investors should be cautious due to high valuation and leverage, while short-term traders may look for breakout trades above 900 ₹ for momentum toward 950–1,000 ₹.