SBILIFE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.1
| Stock Code | SBILIFE | Market Cap | 1,98,023 Cr. | Current Price | 1,974 ₹ | High / Low | 2,116 ₹ |
| Stock P/E | 79.9 | Book Value | 190 ₹ | Dividend Yield | 0.14 % | ROCE | 16.9 % |
| ROE | 15.1 % | Face Value | 10.0 ₹ | DMA 50 | 2,017 ₹ | DMA 200 | 1,873 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | 0.02 % | PAT Qtr | 577 Cr. | PAT Prev Qtr | 495 Cr. |
| RSI | 38.2 | MACD | -8.31 | Volume | 9,17,940 | Avg Vol 1Wk | 19,26,588 |
| Low price | 1,380 ₹ | High price | 2,116 ₹ | PEG Ratio | 4.69 | Debt to equity | 0.00 |
| 52w Index | 80.8 % | Qtr Profit Var | 4.71 % | EPS | 24.7 ₹ | Industry PE | 80.8 |
📉 Chart & Trend Analysis: SBILIFE is trading at 1,974 ₹, slightly below its 50 DMA (2,017 ₹) but above its 200 DMA (1,873 ₹). This indicates near-term weakness but long-term support. RSI at 38.2 suggests the stock is approaching oversold territory but not yet extreme. MACD at -8.31 shows mild bearish momentum. Bollinger Bands indicate price drifting toward the lower band, reflecting selling pressure. Current volume (9.1 lakh) is lower than the 1-week average (19.2 lakh), showing reduced participation.
⚡ Short-Term Momentum Signals: RSI near 40 may trigger a short-term bounce if support holds. MACD remains negative, signaling caution. Weak volume reduces conviction in upward moves.
🎯 Optimal Entry Zone: 1,940 ₹ – 1,970 ₹ (near support and trendline).
🚪 Optimal Exit Zone: 2,050 ₹ – 2,080 ₹ (resistance from recent highs and upper band).
📊 Trend Status: The stock is consolidating between 1,940 ₹ and 2,080 ₹ after a strong uptrend, with mild bearish signals in the short term.
Positive
- Strong ROCE (16.9%) and ROE (15.1%) indicate efficient capital use.
- Debt-free balance sheet (Debt-to-equity: 0.00).
- Consistent profit growth: PAT 577 Cr. vs 495 Cr. (↑ 16.5%).
Limitation
- High P/E of 79.9 compared to industry PE of 80.8, suggesting expensive valuation.
- PEG ratio of 4.69 indicates overvaluation relative to growth.
- Dividend yield at 0.14% is very low.
Company Negative News
- Stock showing short-term weakness below 50 DMA.
- MACD negative, signaling bearish momentum.
- Volume participation declining compared to average.
Company Positive News
- Quarterly profit growth (↑ 4.71%).
- Stable EPS at 24.7 ₹.
- Incremental increase in FII (+0.03%) and DII (+0.02%) holdings.
Industry
- Industry PE at 80.8, in line with SBILIFE’s valuation.
- Life insurance sector benefiting from rising financial awareness and penetration.
- Competition from private insurers and fintech platforms.
Conclusion
🔎 SBILIFE is consolidating with mild bearish signals, trading below its 50 DMA but above its 200 DMA. Short-term entry near 1,940–1,970 ₹ offers risk-managed positioning, with exit around 2,050–2,080 ₹. Long-term fundamentals remain strong with debt-free status and steady profit growth, but valuation is stretched. Investors should watch for volume confirmation before expecting a breakout above 2,080 ₹.
Would you like me to also prepare a peer benchmarking overlay (HDFC Life, ICICI Prudential Life, Max Financial) so you can compare SBILIFE’s valuation and technical strength against its industry peers?