SHRIRAMFIN - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.4

Technical Analysis Report for Shriram Finance Ltd (SHRIRAMFIN)

• Trend Status: Trending upward with strong momentum
• Moving Averages: Price well above 50 DMA (₹664) and 200 DMA (₹635) — bullish alignment
• RSI: 84.2 — overbought zone, signals strong momentum but caution for short-term pullback
• MACD: Positive at 27.6 — strong bullish crossover
• Bollinger Bands: Price near upper band — breakout continuation with volatility risk
• Volume: Nearly 2x weekly average — high conviction rally

Entry & Exit Zones

• Support Levels: ₹720 (minor support), ₹664 (DMA 50), ₹635 (DMA 200)
• Resistance Levels: ₹770 (recent high), ₹785 (projected breakout zone)
• Optimal Entry: ₹715–₹730 (on pullback or consolidation)
• Optimal Exit: ₹765–₹785 (near resistance zone)

Positive

• Strong MACD and RSI — confirms bullish momentum
• Quarterly PAT stable at ₹2,156 Cr. — consistent profitability
• DII holding increased by 2.33% — strong domestic institutional support
• PEG ratio of 0.34 — attractive growth-adjusted valuation

Limitation

• RSI at 84.2 — overbought, risk of short-term correction
• Debt-to-equity ratio of 4.16 — high leverage typical of NBFCs
• ROCE (11.2%) — moderate capital efficiency

Company Negative News

• FII holding declined by 3.00% — reduced foreign investor confidence

Company Positive News

• EPS of ₹52.8 — strong earnings base
• Dividend yield of 1.32% — consistent shareholder returns

Industry

• NBFC sector — cyclical but currently supported by credit growth and rural demand
• Industry P/E of 22.6 — SHRIRAMFIN trades at a discount (P/E of 16.1)

Conclusion

Shriram Finance Ltd is currently trending upward with strong technical indicators and institutional support. While RSI suggests caution due to overbought conditions, the breakout above key moving averages and volume spike indicate sustained momentum. Traders may consider entries near ₹715 with exits around ₹785, keeping a watch on RSI cooling and foreign investor flows.