SONACOMS - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.2

Technical Analysis Report for Sona BLW Precision Forgings Ltd (SONACOMS)

• Trend Status: Trending upward with strong momentum
• Moving Averages: Price above 50 DMA (₹451) and 200 DMA (₹492) — bullish alignment
• RSI: 70.6 — overbought zone, signals strong momentum but caution for short-term pullback
• MACD: Positive at 14.2 — bullish crossover, confirms upward momentum
• Bollinger Bands: Price near upper band — breakout continuation possible
• Volume: Below weekly average — momentum slowing, watch for confirmation

Entry & Exit Zones

• Support Levels: ₹451 (DMA 50), ₹430 (trendline), ₹410 (swing low)
• Resistance Levels: ₹492 (DMA 200), ₹510 (minor resistance), ₹550 (gap zone)
• Optimal Entry: ₹455–₹465 (on pullback or consolidation)
• Optimal Exit: ₹510–₹545 (if momentum sustains)

Positive

• Strong MACD and RSI — confirms bullish momentum
• Quarterly PAT improved from ₹127 Cr. to ₹168 Cr. — solid earnings growth
• DII holding increased by 5.53% — strong domestic institutional support
• Debt-to-equity ratio of 0.03 — financially conservative

Limitation

• RSI above 70 — overbought, risk of short-term correction
• Volume below average — momentum may be fading
• PEG ratio of 2.76 — expensive on growth-adjusted basis

Company Negative News

• FII holding declined by 6.28% — significant foreign investor pullback

Company Positive News

• EPS of ₹9.31 — consistent earnings base
• Quarterly profit variation of 19.2% — steady YoY growth

Industry

• Auto components sector — cyclical with long-term demand from EV and mobility trends
• Industry P/E of 32.6 — SONACOMS trades at a premium

Conclusion

Sona BLW Precision Forgings Ltd is currently trending upward with strong technical indicators and domestic institutional support. While RSI suggests caution due to overbought conditions and FII outflows, the bullish MACD and price action above key moving averages support further upside. Traders may consider entries near ₹455 with exits around ₹545, monitoring volume and RSI cooling for sustained momentum.