SHREECEM - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.2

Technical Analysis Report for Shree Cement Ltd (SHREECEM)

• Trend Status: Reversing from recent highs, testing lower support zones
• Moving Averages: Price below both 50 DMA (₹29,519) and 200 DMA (₹29,234) — bearish alignment
• RSI: 36.8 — approaching oversold territory, weak momentum
• MACD: Deeply negative at -285 — strong bearish crossover
• Bollinger Bands: Price near lower band — oversold signal, potential for technical bounce
• Volume: Below weekly average — low conviction in current price action

Entry & Exit Zones

• Support Levels: ₹27,500 (minor support), ₹26,800 (trendline), ₹25,500 (swing low)
• Resistance Levels: ₹29,200 (DMA 200), ₹29,500 (DMA 50), ₹30,800 (gap zone)
• Optimal Entry: ₹27,500–₹28,000 (on confirmation of support)
• Optimal Exit: ₹29,800–₹30,800 (if reversal sustains)

Positive

• EPS of ₹466 — strong earnings base
• Low debt-to-equity ratio of 0.09 — financially conservative
• FII holding increased by 0.27% — foreign investor confidence

Limitation

• Price below key moving averages — weak technical structure
• MACD and RSI indicate bearish momentum
• PEG ratio of -2.95 — poor growth-adjusted valuation

Company Negative News

• Quarterly PAT dropped from ₹619 Cr. to ₹277 Cr. — significant decline
• DII holding declined by 0.25% — reduced domestic institutional interest

Company Positive News

• Quarterly profit variation of 198% — strong YoY growth despite sequential drop

Industry

• Cement sector — cyclical with infrastructure-driven demand
• Industry P/E of 38.9 — SHREECEM trades at a premium (P/E of 60.8)

Conclusion

Shree Cement Ltd is currently reversing from its recent highs and testing support near ₹28,000. While fundamentals remain strong, technical indicators suggest caution. Traders may consider speculative entries near ₹27,500 with exits around ₹30,800, watching for volume recovery and MACD reversal to confirm trend strength.