SHYAMMETL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.3

Technical Analysis Report for Shyam Metalics and Energy Ltd (SHYAMMETL)

• Trend Status: Reversing from recent highs, testing key support
• Moving Averages: Price below 50 DMA (₹920) and hovering near 200 DMA (₹876) — neutral to bearish bias
• RSI: 44.8 — weak momentum, approaching oversold zone
• MACD: Negative at -5.29 — bearish crossover, trend weakening
• Bollinger Bands: Price near lower band — oversold signal, possible bounce
• Volume: Significantly below weekly average — low conviction in current move

Entry & Exit Zones

• Support Levels: ₹860 (minor support), ₹828 (trendline), ₹800 (swing low)
• Resistance Levels: ₹920 (DMA 50), ₹950 (gap zone), ₹1,001 (52-week high)
• Optimal Entry: ₹860–₹875 (on confirmation of support)
• Optimal Exit: ₹940–₹990 (if reversal sustains)

Positive

• EPS of ₹17.7 — consistent earnings base
• Low debt-to-equity ratio of 0.03 — strong financial discipline
• FII holding increased by 0.44% — foreign investor confidence

Limitation

• MACD and RSI indicate bearish momentum
• Price below 50 DMA — short-term weakness
• PEG ratio of -3.31 — poor growth-adjusted valuation

Company Negative News

• DII holding declined by 0.09% — slight drop in domestic institutional interest
• Volume significantly below average — waning market interest

Company Positive News

• Quarterly PAT improved from ₹99.5 Cr. to ₹168 Cr. — strong sequential growth

Industry

• Metals and mining sector — cyclical with global demand sensitivity
• Industry P/E of 24.0 — SHYAMMETL trades at a premium (P/E of 49.5)

Conclusion

Shyam Metalics is currently reversing from its recent highs and testing support near its 200 DMA. While fundamentals remain stable and FII interest is rising, technical indicators suggest caution. Traders may consider entries near ₹860 with exits around ₹990, watching for volume recovery and MACD reversal to confirm trend strength.