SONATSOFTW - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 19 Sept 25, 2:16 pm

Technical Rating: 4.1

Here’s a detailed technical analysis of Sonata Software Ltd. (SONATSOFTW)

📊 Trend Analysis

Current Trend: The stock is showing signs of a short-term reversal from its recent downtrend. It has bounced from the ₹286 low and is now trading above the 50 DMA but still below the 200 DMA.

Momentum: Bullish bias. RSI at 64.9 and MACD at 3.22 suggest strengthening momentum, though RSI is nearing overbought territory.

📈 Moving Averages

50 DMA: ₹380

200 DMA: ₹437

Current Price: ₹400

Interpretation: Price is above the 50 DMA, indicating short-term strength, but still below the 200 DMA — a recovery phase. A breakout above ₹437 would confirm a medium-term trend reversal.

📉 MACD & RSI

MACD: Positive and rising, signaling bullish momentum.

RSI: At 64.9, approaching overbought zone (>70), but still in a healthy range for continuation.

Conclusion: Momentum indicators support a buy-on-dips strategy, with caution near resistance.

📊 Volume Trends

Current Volume: 1.27 crore

1-Week Avg Volume: 32.17 lakh

Interpretation: Significant volume surge suggests strong accumulation, possibly institutional buying.

📉 Bollinger Bands

Price is likely near the upper band, indicating strength but also potential short-term resistance. A breakout above ₹410–₹420 with volume would confirm continuation.

📌 Support & Resistance Levels

Level Price (₹) Commentary

Support 1 380 50 DMA, short-term support

Support 2 350 Previous swing low

Resistance 1 437 200 DMA, key breakout level

Resistance 2 480–520 Intermediate swing highs

Resistance 3 687 52-week high

🎯 Entry & Exit Zones

Optimal Entry: ₹380–₹390 (on pullback with volume support)

Exit Zone: ₹480–₹520 (partial profit booking), ₹680+ (final target if breakout sustains)

🔍 Summary

Trend: Reversing upward

Momentum: Strong bullish

Bias: Buy on dips

Short-Term Strategy: Accumulate near ₹380–₹390 with breakout confirmation above ₹437. Target ₹480–₹520 initially, with potential for ₹680+ if momentum continues.

Let me know if you'd like a visual chart setup or swing trade plan based on this!

Edit in a page