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SOLARINDS - Technical Analysis with Chart Patterns & Indicators

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Rating: 4

Last Updated Time : 24 May 26, 10:34 pm

Technical Rating: 4.0

Stock Code SOLARINDS Market Cap 1,63,839 Cr. Current Price 18,099 ₹ High / Low 18,699 ₹
Stock P/E 134 Book Value 467 ₹ Dividend Yield 0.06 % ROCE 43.6 %
ROE 33.5 % Face Value 2.00 ₹ DMA 50 15,401 ₹ DMA 200 14,000 ₹
Chg in FII Hold -0.15 % Chg in DII Hold -0.02 % PAT Qtr 378 Cr. PAT Prev Qtr 329 Cr.
RSI 74.3 MACD 957 Volume 1,64,264 Avg Vol 1Wk 3,43,742
Low price 11,641 ₹ High price 18,699 ₹ PEG Ratio 3.35 Debt to equity 0.04
52w Index 91.5 % Qtr Profit Var 66.4 % EPS 135 ₹ Industry PE 28.3

📈 Chart & Trend Analysis

  • Moving Averages: Current price (₹18,099) is well above both 50 DMA (₹15,401) and 200 DMA (₹14,000), confirming strong bullish momentum.
  • RSI: At 74.3, the stock is overbought, signaling caution for short-term traders.
  • MACD: Strongly positive (957), indicating powerful bullish momentum continuation.
  • Bollinger Bands: Price is near the upper band, suggesting strong buying pressure but risk of short-term correction.
  • Volume Trends: Current volume (1,64,264) is below 1-week average (3,43,742), showing weaker participation despite price strength.

📊 Momentum & Signals

  • Short-term momentum: Strong, supported by MACD and price above moving averages, though RSI signals overbought risk.
  • Support Zone: ₹17,800 – ₹18,000 (near-term support).
  • Resistance Zone: ₹18,600 – ₹18,700 (recent highs and psychological barrier).
  • Entry Zone: ₹17,900 – ₹18,100 (near support, bullish bias).
  • Exit Zone: ₹18,600 – ₹18,700 (resistance levels).

📉 Trend Status

The stock is currently in a strong uptrend with bullish signals from MACD and price above moving averages. A breakout above ₹18,700 could extend the rally further, while RSI suggests caution for short-term traders due to overbought conditions.

✅ Positive

  • Exceptional ROCE (43.6%) and ROE (33.5%) indicate outstanding efficiency.
  • Low debt-to-equity ratio (0.04), showing strong financial stability.
  • Quarterly PAT growth (₹378 Cr vs ₹329 Cr) supports earnings momentum.
  • EPS of ₹135 reflects strong profitability.
  • 52-week performance (91.5% index gain) highlights investor confidence.

⚠️ Limitation

  • Very high P/E ratio (134) compared to industry average (28.3), making valuation expensive.
  • PEG ratio at 3.35, suggesting costly growth valuation.
  • Dividend yield is very low (0.06%), limiting income appeal.
  • Volume participation is weaker compared to average, limiting breakout strength.

📰 Company Negative News

  • FII holding decreased (-0.15%), showing reduced foreign investor confidence.
  • DII holding decreased (-0.02%), reflecting slight domestic institutional weakness.

🌟 Company Positive News

  • Quarterly profit variation (+66.4%) highlights strong earnings growth.
  • Strong 52-week rally shows consistent investor support.

🏦 Industry

  • Industry PE at 28.3, much lower than SOLARINDS’s 134, suggesting peers are cheaper.
  • Defense and explosives sector benefits from infrastructure expansion and government contracts, driving demand.

📌 Conclusion

SOLARINDS is in a bullish uptrend with strong fundamentals and technical signals. Entry near ₹17,900 – ₹18,100 with exit around ₹18,600 – ₹18,700 is optimal for short-term traders. Long-term investors should weigh strong efficiency metrics and earnings growth against high valuations and weak trading volume.

Technical Analysis
Fundamental Analysis

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