SHREECEM - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.0

📈 Chart & Trend Analysis:

SHREECEM is trading at ₹25,600, below both its 50 DMA (₹27,257) and 200 DMA (₹28,479), indicating a bearish trend. RSI at 34.1 suggests oversold conditions, hinting at possible rebound opportunities. MACD at -389 is strongly negative, confirming bearish momentum. Price is close to its 52-week low (₹24,811), showing heavy downside pressure. Bollinger Bands indicate the stock is hugging the lower band, reflecting persistent weakness. Current volume (23,740) is below the weekly average (46,379), suggesting reduced participation.

🔑 Momentum Signals:

- RSI oversold near 34, potential for technical bounce.

- MACD strongly negative, confirming bearish continuation.

- Price below both DMAs signals weakness.

- Lower-than-average volume shows cautious sentiment.

🎯 Entry & Exit Zones:

- Support: ₹24,800 – ₹25,000 (near 52-week low).

- Resistance: ₹27,200 – ₹27,300 (near 50 DMA).

- Optimal Entry: ₹25,000 – ₹25,500 range for rebound trades.

- Exit/Profit Booking: ₹27,200 – ₹27,300 unless breakout occurs.

📊 Trend Status:

The stock is reversing downward with strong bearish signals. Oversold RSI may trigger a short-term relief rally, but overall trend remains weak unless price sustains above 50 DMA.

Positive

• EPS at ₹466 reflects strong earnings base.
• Low debt-to-equity ratio (0.09) ensures financial stability.
• Dividend yield at 0.43% provides modest income return.
• FII holdings increased (+0.27%), showing foreign investor interest.

Limitation

• Price trading below both 50 DMA and 200 DMA.
• MACD strongly negative, signaling bearish momentum.
• High P/E ratio (54.9) compared to industry average (33.2).
• ROCE (7.17%) and ROE (5.69%) are modest, showing limited efficiency.
• PEG ratio at -2.67 indicates valuation concerns.

Company Negative News

• Quarterly PAT declined sharply to ₹277 Cr from ₹619 Cr.
• DII holdings reduced (-0.25%), showing weaker domestic investor confidence.

Company Positive News

• Quarterly profit variation at 198% YoY shows strong growth momentum despite sequential decline.
• FII holdings increased (+0.27%), reflecting foreign investor support.
• Stock trading above its 52-week low (₹24,811), showing resilience despite correction.

Industry

• Industry P/E at 33.2, SHREECEM trades at a premium valuation.
• Cement sector showing cyclical demand recovery.
• Peers trade at lower multiples, making SHREECEM relatively expensive but backed by strong EPS.

Conclusion

⚠️ SHREECEM is in a bearish reversal phase with oversold RSI suggesting possible short-term bounce. Entry near ₹25,000–₹25,500 may be considered for rebound trades, while resistance at ₹27,200–₹27,300 is critical. Strong EPS and low debt support long-term stability, but weak technicals and declining profits warrant cautious positioning.