SHYAMMETL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.3

📈 Chart & Trend Analysis:

SHYAMMETL is trading at ₹821, below both its 50 DMA (₹846) and 200 DMA (₹862), indicating short-term weakness. RSI at 39.6 suggests the stock is approaching oversold territory, hinting at potential rebound opportunities. MACD at -15.1 is negative, confirming bearish momentum. Price is mid-range between its 52-week high (₹1,001) and low (₹628). Bollinger Bands show price leaning toward the lower band, reflecting downside pressure. Current volume (85k) is significantly below the weekly average (1.83 lakh), indicating reduced participation.

🔑 Momentum Signals:

- RSI near 40 suggests weak momentum, potential for rebound if support holds.

- MACD negative, confirming bearish undertone.

- Price below both DMAs signals short-term weakness.

- Low volume indicates lack of strong buying interest.

🎯 Entry & Exit Zones:

- Support: ₹810 – ₹820 (near current levels).

- Resistance: ₹845 – ₹860 (near 50 & 200 DMA).

- Optimal Entry: ₹810 – ₹820 range for speculative rebound trades.

- Exit/Profit Booking: ₹845 – ₹860 unless breakout occurs.

📊 Trend Status:

The stock is consolidating with bearish undertones. A breakout above ₹860 could confirm trend reversal, while failure may lead to sideways movement.

Positive

• EPS at ₹18.7 reflects earnings strength.
• Low debt-to-equity ratio (0.05) ensures financial stability.
• Quarterly profit variation at 25.2% YoY shows growth momentum.
• FII holdings increased (+0.44%), showing foreign investor interest.

Limitation

• Price trading below both 50 DMA and 200 DMA.
• MACD negative, signaling bearish momentum.
• High P/E ratio (44.0) compared to industry average (20.6).
• PEG ratio at -2.94 indicates valuation concerns.
• ROE (8.48%) is modest compared to peers.

Company Negative News

• Quarterly PAT declined to ₹136 Cr from ₹168 Cr.
• DII holdings reduced (-0.09%), showing weaker domestic investor confidence.
• Volume significantly below average, reflecting reduced market participation.

Company Positive News

• FII holdings increased (+0.44%), reflecting foreign investor support.
• Quarterly profit variation at 25.2% YoY shows growth momentum.
• Stock trading well above its 52-week low (₹628), showing resilience despite correction.

Industry

• Industry P/E at 20.6, SHYAMMETL trades at a premium valuation.
• Metals sector is cyclical, with demand linked to global commodity trends.
• Peers trade at lower multiples, making SHYAMMETL relatively expensive.

Conclusion

⚖️ SHYAMMETL is consolidating with bearish undertones. Entry near ₹810–₹820 may be considered for rebound trades, while resistance at ₹845–₹860 is critical for trend reversal. Strong fundamentals like low debt and EPS support stability, but weak technicals and valuation concerns warrant cautious positioning.