SIGNATURE - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.1

📈 Chart & Trend Analysis:

SIGNATURE is trading at ₹1,145, right at its 200 DMA (₹1,145) and slightly above its 50 DMA (₹1,107), indicating a neutral-to-bullish bias. RSI at 60.1 suggests moderately strong momentum, nearing overbought territory. MACD at 8.43 is positive, confirming short-term bullish continuation. Price is well below its 52-week high (₹1,420) but above its low (₹988). Bollinger Bands show price moving toward the upper band, reflecting buying interest. Current volume (2.85 lakh) is higher than the weekly average (2.50 lakh), confirming accumulation strength.

🔑 Momentum Signals:

- RSI near 60 shows strong momentum, but caution as it approaches overbought zone.

- MACD positive, confirming bullish continuation.

- Price holding above 50 DMA and testing 200 DMA indicates consolidation with upward bias.

- Elevated volume supports accumulation.

🎯 Entry & Exit Zones:

- Support: ₹1,100 – ₹1,120 (near 50 DMA).

- Resistance: ₹1,200 – ₹1,220 (short-term ceiling).

- Optimal Entry: ₹1,110 – ₹1,130 range on dips.

- Exit/Profit Booking: ₹1,200 – ₹1,220 unless breakout occurs.

📊 Trend Status:

The stock is consolidating with bullish undertones. Sustained momentum above ₹1,200 could trigger a breakout, while failure may lead to sideways movement.

Positive

• Price trading above 50 DMA and testing 200 DMA.
• MACD positive, confirming bullish momentum.
• Volume higher than average, showing accumulation strength.
• DII holdings increased (+0.27%), reflecting domestic investor support.

Limitation

• Extremely high P/E ratio (242) compared to industry average (33.7).
• PEG ratio at 5.76 indicates expensive valuation relative to growth.
• Dividend yield at 0.00%, offering no income return.
• High debt-to-equity ratio (2.31) raises financial risk.

Company Negative News

• Quarterly PAT declined to -₹26.5 Cr from ₹13.0 Cr.
• Quarterly profit variation at -560% shows severe deterioration.
• FII holdings reduced (-0.02%), reflecting weaker foreign investor confidence.

Company Positive News

• DII holdings increased (+0.27%), showing domestic investor support.
• Stock trading above its 52-week low (₹988), showing resilience despite correction.
• MACD and RSI support short-term bullish momentum.

Industry

• Industry P/E at 33.7, SIGNATURE trades at a steep premium (P/E 242).
• Sector offers growth opportunities but valuations are stretched.
• Peers trade at lower multiples, making SIGNATURE relatively expensive.

Conclusion

⚖️ SIGNATURE is consolidating with bullish undertones. Entry near ₹1,110–₹1,130 offers favorable risk-reward, while resistance at ₹1,200–₹1,220 is critical for breakout confirmation. Strong technical signals support near-term upside, but weak fundamentals and stretched valuations warrant cautious positioning.