SOBHA - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.0

Technical Analysis Report for Sobha Ltd (SOBHA)

• Trend Status: Trending upward with strong momentum
• Moving Averages: Price above both 50 DMA (₹1,527) and 200 DMA (₹1,487) — bullish alignment
• RSI: 65.4 — moderately strong, nearing overbought zone
• MACD: Positive at 17.6 — bullish crossover, confirms upward momentum
• Bollinger Bands: Price near upper band — breakout continuation possible
• Volume: Above weekly average — strong buying interest

Entry & Exit Zones

• Support Levels: ₹1,527 (DMA 50), ₹1,487 (DMA 200), ₹1,450 (trendline)
• Resistance Levels: ₹1,675 (minor resistance), ₹1,732 (52-week high)
• Optimal Entry: ₹1,520–₹1,540 (on pullback or consolidation)
• Optimal Exit: ₹1,700–₹1,730 (near resistance zone)

Positive

• MACD and RSI indicate strong bullish momentum
• Quarterly PAT more than doubled — ₹104 Cr. vs ₹45.9 Cr.
• DII holding increased by 1.42% — strong domestic institutional support
• EPS of ₹21.2 — solid earnings base

Limitation

• High P/E of 76.1 vs industry average of 42.4 — premium valuation
• PEG ratio of -9.64 — poor growth-adjusted valuation
• ROCE (6.98%) and ROE (3.31%) — below industry benchmarks

Company Negative News

• FII holding declined by 1.68% — reduced foreign investor confidence

Company Positive News

• Quarterly profit variation of 305% — strong YoY growth
• Debt-to-equity ratio of 0.23 — financially conservative

Industry

• Real estate development sector — cyclical with policy and interest rate sensitivity
• Industry P/E of 42.4 — Sobha trades at a significant premium

Conclusion

Sobha Ltd is currently trending upward with strong technical indicators and institutional support. While valuation remains stretched and foreign investor sentiment has dipped, momentum indicators and volume trends suggest further upside. Traders may consider entries near ₹1,520 with exits around ₹1,730, keeping a watch on RSI cooling and resistance levels.