SBILIFE - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.1

📊 Chart Patterns: SBILIFE is trading above both its 50 DMA (1,963 ₹) and 200 DMA (1,815 ₹). Current price (2,026 ₹) is close to its 52-week high (2,087 ₹), showing strong bullish momentum. The broader pattern indicates higher highs and higher lows, confirming an uptrend.

📈 Moving Averages: Price > 50 DMA and > 200 DMA → bullish alignment, signaling strength in both short-term and long-term trends.

📉 RSI: 55.4 → neutral to slightly bullish, not overbought, suggesting room for further upside.

📈 MACD: 16.3 → positive crossover, confirming bullish momentum.

📊 Bollinger Bands: Price near upper band, indicating strength but also caution for possible short-term consolidation.

📊 Volume Trends: Current volume (4,13,394) is lower than 1-week average (7,03,171) → momentum is positive but needs stronger participation for breakout confirmation.

📍 Support Levels: 1,963 ₹ (DMA 50), 1,900 ₹, and 1,815 ₹ (DMA 200).

📍 Resistance Levels: 2,087 ₹ (recent high), 2,100 ₹, and 2,150 ₹.

🔎 Trend: The stock is trending upward with bullish signals. A breakout above 2,087 ₹ could trigger further rally toward 2,100–2,150 ₹, while a drop below 1,963 ₹ may lead to consolidation.

Positive

• 📈 EPS at 24.5 ₹ supports earnings strength.
• 📊 ROCE (16.9%) and ROE (15.1%) show strong capital efficiency.
• 📊 DII holdings increased (+0.46%), showing domestic investor confidence.
• 📊 Debt-free balance sheet (Debt-to-equity 0.00) adds financial stability.

Limitation

• ⚠️ High P/E ratio (82.8) compared to industry PE (84.3) → valuation premium.
• ⚠️ PEG ratio (4.87) suggests expensive growth expectations.
• ⚠️ Dividend yield at 0.13% is very low.
• ⚠️ Volume below average, limiting breakout strength.

Company Negative News

• 📉 FII holdings declined (–0.49%), showing reduced foreign investor confidence.
• 📉 PAT fell sequentially from 594 Cr. to 495 Cr. (–6.58%).

Company Positive News

• 📈 Price trading above both 50 DMA and 200 DMA, showing resilience.
• 📊 Strong fundamentals with high ROCE and ROE.
• 📊 Domestic institutional investors increasing stake.

Industry

• 🏦 Life insurance sector PE at 84.3, close to SBILIFE’s PE (82.8), suggesting fair valuation relative to peers.
• 📊 Industry supported by rising insurance penetration and long-term growth prospects.

Conclusion

🔎 SBILIFE is trending upward with bullish signals (MACD positive, RSI healthy, price above key DMAs). Optimal entry zone lies near 1,963–2,000 ₹ on dips, while exit/resistance zone is 2,087–2,150 ₹. Long-term investors may hold given strong fundamentals and debt-free balance sheet, while short-term traders can look for breakout trades above 2,087 ₹ for momentum toward 2,150 ₹.