SOLARINDS - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.6

Technical Analysis Report for Solar Industries India Ltd (SOLARINDS)

• Trend Status: Reversing from recent highs, testing support zones
• Moving Averages: Price below 50 DMA (₹14,187) but above 200 DMA (₹13,411) — mildly bearish short-term, bullish long-term
• RSI: 44.1 — weak momentum, approaching oversold territory
• MACD: Negative at -62.0 — bearish crossover, trend weakening
• Bollinger Bands: Price near lower band — oversold signal, potential for technical bounce
• Volume: Slightly above weekly average — moderate interest, not breakout strength

Entry & Exit Zones

• Support Levels: ₹13,400 (DMA 200), ₹13,000 (trendline), ₹12,500 (swing low)
• Resistance Levels: ₹14,200 (DMA 50), ₹15,000 (gap zone), ₹17,820 (52-week high)
• Optimal Entry: ₹13,300–₹13,500 (on confirmation of support)
• Optimal Exit: ₹14,800–₹15,500 (if reversal sustains)

Positive

• Strong ROCE (37.3%) and ROE (29.7%) — excellent capital efficiency
• EPS of ₹98.2 — robust earnings base
• Debt-to-equity ratio of 0.07 — virtually debt-free
• FII holding increased by 0.32% — foreign investor confidence

Limitation

• MACD and RSI indicate bearish momentum
• Price below 50 DMA — short-term weakness
• High P/E of 142 vs industry average of 29.4 — premium valuation
• PEG ratio of 3.12 — expensive on growth-adjusted basis

Company Negative News

• DII holding declined by 0.69% — reduced domestic institutional interest

Company Positive News

• Quarterly PAT improved from ₹227 Cr. to ₹280 Cr. — strong sequential growth
• Quarterly profit variation of 43.9% — consistent earnings momentum

Industry

• Defense and industrial explosives — niche sector with long-term strategic demand
• Industry P/E of 29.4 — SOLARINDS trades at a significant premium

Conclusion

Solar Industries India Ltd is currently reversing from its recent highs and testing support near ₹13,400. While long-term fundamentals are strong and volume is stable, technical indicators suggest caution. Traders may consider entries near ₹13,300 with exits around ₹15,500, watching for MACD reversal and RSI recovery to confirm trend strength.