SCI - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.8

📈 Chart & Trend Analysis:

SCI is trading at ₹210, below both its 50 DMA (₹233) and 200 DMA (₹221), indicating short-term weakness. RSI at 30.2 suggests oversold conditions, hinting at potential rebound opportunities. MACD at -8.25 is negative, confirming bearish momentum. Price is closer to its 52-week low (₹138) than its high (₹280), showing downside pressure. Bollinger Bands suggest the stock is hugging the lower band, reflecting persistent weakness. Current volume (37.8 lakh) is higher than the weekly average (28.3 lakh), indicating active selling.

🔑 Momentum Signals:

- RSI oversold near 30, potential for technical bounce.

- MACD negative, confirming bearish continuation.

- Price below both DMAs signals weakness.

- Elevated volume indicates strong participation in the downtrend.

🎯 Entry & Exit Zones:

- Support: ₹200 – ₹205 (near recent lows).

- Resistance: ₹230 – ₹235 (near 50 DMA).

- Optimal Entry: ₹200 – ₹210 range for rebound trades.

- Exit/Profit Booking: ₹230 – ₹235 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

• Dividend yield at 3.18% provides attractive income return.
• EPS at ₹16.2 reflects earnings strength relative to price.
• FII holdings increased (+0.35%), showing foreign investor interest.
• Stock trading well above its 52-week low (₹138), showing resilience despite correction.

Limitation

• Price trading below both 50 DMA and 200 DMA.
• MACD negative, signaling bearish momentum.
• PEG ratio at 15.4 indicates expensive valuation relative to growth.
• ROCE (10.1%) and ROE (11.0%) are modest compared to peers.

Company Negative News

• Quarterly PAT declined sharply to ₹176 Cr from ₹343 Cr.
• Quarterly profit variation at -39.4% shows weak momentum.

Company Positive News

• DII holdings increased slightly (+0.01%), showing domestic investor support.
• Dividend yield at 3.18% supports investor returns.
• Stock trading at a discount compared to its 52-week high (₹280), offering value entry.

Industry

• Industry P/E at 12.3, SCI trades slightly above fair valuation (P/E 13.0).
• Shipping sector is cyclical, with demand linked to global trade flows.
• Peers trade at similar multiples, making SCI reasonably valued but vulnerable to earnings volatility.

Conclusion

⚠️ SCI is in a bearish reversal phase with oversold RSI suggesting possible short-term bounce. Entry near ₹200–₹210 may be considered for rebound trades, while resistance at ₹230–₹235 is critical. Weak fundamentals and declining profits warrant caution, making this a high-risk trade despite attractive dividend yield.