⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
SIGNATURE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.8
| Stock Code | SIGNATURE | Market Cap | 11,525 Cr. | Current Price | 824 ₹ | High / Low | 1,310 ₹ |
| Book Value | 69.3 ₹ | Dividend Yield | 0.00 % | ROCE | 5.93 % | ROE | -3.33 % |
| Face Value | 1.00 ₹ | DMA 50 | 858 ₹ | DMA 200 | 979 ₹ | Chg in FII Hold | -0.59 % |
| Chg in DII Hold | 0.24 % | PAT Qtr | 3.21 Cr. | PAT Prev Qtr | -13.5 Cr. | RSI | 42.5 |
| MACD | -2.81 | Volume | 2,53,860 | Avg Vol 1Wk | 2,07,151 | Low price | 705 ₹ |
| High price | 1,310 ₹ | Debt to equity | 3.36 | 52w Index | 19.6 % | Qtr Profit Var | -93.8 % |
| EPS | 1.15 ₹ | Industry PE | 26.6 |
📈 Chart & Trend Analysis
- Moving Averages: Current price (₹824) is below both 50 DMA (₹858) and 200 DMA (₹979), showing bearish momentum.
- RSI: At 42.5, the stock is weak, approaching oversold territory.
- MACD: Negative (-2.81), indicating bearish divergence.
- Bollinger Bands: Price is near the lower band, suggesting selling pressure and possible short-term rebound.
- Volume Trends: Current volume (2,53,860) is above 1-week average (2,07,151), showing increased participation in recent moves.
📊 Momentum & Signals
- Short-term momentum: Weak, with bearish MACD and RSI below 50.
- Support Zone: ₹810 – ₹820 (near-term support).
- Resistance Zone: ₹850 – ₹860 (50 DMA and psychological barrier).
- Entry Zone: ₹815 – ₹825 (near support, cautious entry).
- Exit Zone: ₹850 – ₹860 (resistance levels).
📉 Trend Status
The stock is currently in a consolidation-to-reversal phase with weak RSI and negative MACD. Sustained move above ₹860 could signal recovery, while failure to hold ₹810 may trigger further downside.
✅ Positive
- Book value at ₹69.3 provides valuation support.
- Quarterly PAT turned positive (₹3.21 Cr vs ₹-13.5 Cr), showing improvement.
- Volume strength indicates active trading interest.
⚠️ Limitation
- Weak ROCE (5.93%) and negative ROE (-3.33%), showing poor efficiency.
- High debt-to-equity ratio (3.36), indicating significant leverage risk.
- No dividend yield (0.00%), limiting income appeal.
📰 Company Negative News
- Quarterly profit variation (-93.8%) highlights earnings volatility.
- FII holding decreased (-0.59%), showing reduced foreign investor confidence.
🌟 Company Positive News
- DII holding increased (+0.24%), reflecting domestic institutional support.
- PAT recovery in the latest quarter signals operational improvement.
🏦 Industry
- Industry PE at 26.6, suggesting peers are more reasonably valued compared to SIGNATURE’s weak fundamentals.
- Sector remains volatile with leverage and profitability challenges impacting investor sentiment.
📌 Conclusion
SIGNATURE is in a consolidation-to-reversal phase with weak fundamentals and bearish technical signals. Entry near ₹815 – ₹825 with exit around ₹850 – ₹860 is suitable for short-term traders. Long-term investors should remain cautious due to high debt, poor efficiency, and earnings volatility despite recent PAT recovery.