SOLARINDS - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.9

📈 Chart & Trend Analysis:

SOLARINDS is trading at ₹11,949, below both its 50 DMA (₹13,267) and 200 DMA (₹13,327), indicating a strong bearish trend. RSI at 23.0 suggests oversold conditions, hinting at potential short-term rebound opportunities. MACD at -472 is sharply negative, confirming strong bearish momentum. Price is significantly below its 52-week high (₹17,820) but well above its low (₹8,479). Bollinger Bands show price hugging the lower band, reflecting persistent weakness. Current volume (1.22 lakh) is higher than the weekly average (79k), suggesting active selling pressure.

🔑 Momentum Signals:

- RSI oversold at 23, potential for technical bounce.

- MACD strongly negative, confirming bearish continuation.

- Price below both DMAs signals weakness.

- Elevated volume indicates strong selling activity.

🎯 Entry & Exit Zones:

- Support: ₹11,800 – ₹12,000 (near current levels).

- Resistance: ₹13,200 – ₹13,300 (near 50 & 200 DMA).

- Optimal Entry: ₹11,800 – ₹12,000 range for speculative rebound trades.

- Exit/Profit Booking: ₹13,200 – ₹13,300 unless breakout occurs.

📊 Trend Status:

The stock is reversing downward with strong bearish signals. Oversold RSI may trigger a short-term relief rally, but overall trend remains weak unless price sustains above 200 DMA.

Positive

• Strong ROCE (37.3%) and ROE (29.7%) highlight operational efficiency.
• EPS at ₹105 reflects solid earnings base.
• Low debt-to-equity ratio (0.05) ensures financial stability.
• FII holdings increased (+0.32%), showing foreign investor interest.

Limitation

• Price trading below both 50 DMA and 200 DMA.
• MACD strongly negative, signaling bearish momentum.
• High P/E ratio (114) compared to industry average (23.9).
• PEG ratio at 2.52 indicates expensive valuation relative to growth.
• Dividend yield at 0.08% is negligible.

Company Negative News

• Quarterly PAT declined to ₹235 Cr from ₹280 Cr.
• DII holdings reduced (-0.69%), showing weaker domestic investor confidence.

Company Positive News

• Quarterly profit variation at 32.4% YoY shows growth momentum.
• FII holdings increased (+0.32%), reflecting foreign investor support.
• Stock trading well above its 52-week low (₹8,479), showing resilience despite correction.

Industry

• Industry P/E at 23.9, SOLARINDS trades at a steep premium (P/E 114).
• Defense and explosives sector showing cyclical demand growth.
• Peers trade at lower multiples, making SOLARINDS relatively expensive but backed by strong fundamentals.

Conclusion

⚠️ SOLARINDS is in a bearish reversal phase with oversold RSI suggesting possible short-term bounce. Entry near ₹11,800–₹12,000 may be considered for rebound trades, while resistance at ₹13,200–₹13,300 is critical. Strong fundamentals support long-term stability, but stretched valuations and weak technicals warrant cautious positioning.