SCHNEIDER - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.2

📈 Chart & Trend Analysis:

SCHNEIDER is trading at ₹738, below both its 50 DMA (₹775) and 200 DMA (₹786), indicating short-term weakness. RSI at 36.3 suggests oversold conditions, hinting at potential rebound opportunities. MACD at -24.3 is negative, confirming bearish momentum. Price is well below its 52-week high (₹1,055) but above its low (₹517). Bollinger Bands show price leaning toward the lower band, reflecting downside pressure. Current volume (2.01 lakh) is higher than the weekly average (1.62 lakh), suggesting active selling.

🔑 Momentum Signals:

- RSI oversold near 36, potential for short-term bounce.

- MACD negative, confirming bearish continuation.

- Price below both DMAs signals weakness.

- Elevated volume indicates strong participation in the downtrend.

🎯 Entry & Exit Zones:

- Support: ₹720 – ₹730 (near recent lows).

- Resistance: ₹775 – ₹785 (near 50 & 200 DMA).

- Optimal Entry: ₹725 – ₹740 range for rebound trades.

- Exit/Profit Booking: ₹775 – ₹785 unless breakout occurs.

📊 Trend Status:

The stock is reversing downward with bearish signals. Oversold RSI may trigger a short-term relief rally, but overall trend remains weak unless price sustains above 200 DMA.

Positive

• Strong ROCE (40.9%) and ROE (74.0%) highlight operational efficiency.
• EPS at ₹10.8 reflects earnings strength.
• Quarterly PAT improved to ₹52.3 Cr from ₹41.2 Cr.
• PEG ratio at 0.69 indicates reasonable valuation relative to growth.

Limitation

• Price trading below both 50 DMA and 200 DMA.
• MACD negative, signaling bearish momentum.
• High P/E ratio (71.9) compared to industry average (43.9).
• Debt-to-equity ratio at 0.80 increases financial risk.
• Dividend yield at 0.00%, offering no income return.

Company Negative News

• Quarterly profit variation at -3.59% shows weak momentum.
• FII holdings reduced (-0.02%), reflecting weaker foreign investor confidence.

Company Positive News

• DII holdings increased (+0.31%), showing domestic investor support.
• Quarterly PAT growth quarter-on-quarter indicates improving profitability.
• Stock trading well above its 52-week low (₹517), showing resilience despite correction.

Industry

• Industry P/E at 43.9, SCHNEIDER trades at a premium valuation (P/E 71.9).
• Sector showing cyclical demand recovery.
• Peers trade at lower multiples, SCHNEIDER commands premium due to strong ROE/ROCE metrics.

Conclusion

⚠️ SCHNEIDER is in a bearish reversal phase with oversold RSI suggesting possible short-term bounce. Entry near ₹725–₹740 may be considered for rebound trades, while resistance at ₹775–₹785 is critical. Strong efficiency metrics support long-term stability, but stretched valuations and high debt warrant cautious positioning.