SONATSOFTW - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | SONATSOFTW | Market Cap | 7,152 Cr. | Current Price | 255 ₹ | High / Low | 464 ₹ |
| Stock P/E | 29.2 | Book Value | 28.6 ₹ | Dividend Yield | 1.73 % | ROCE | 30.6 % |
| ROE | 28.4 % | Face Value | 1.00 ₹ | DMA 50 | 263 ₹ | DMA 200 | 330 ₹ |
| Chg in FII Hold | -0.05 % | Chg in DII Hold | -0.75 % | PAT Qtr | 57.7 Cr. | PAT Prev Qtr | 147 Cr. |
| RSI | 49.5 | MACD | 3.20 | Volume | 7,25,566 | Avg Vol 1Wk | 5,95,186 |
| Low price | 207 ₹ | High price | 464 ₹ | PEG Ratio | -9.44 | Debt to equity | 0.16 |
| 52w Index | 18.6 % | Qtr Profit Var | 874 % | EPS | 7.86 ₹ | Industry PE | 21.6 |
📊 Chart & Indicators: SONATSOFTW is trading at ₹255, below both 50 DMA (₹263) and 200 DMA (₹330), showing weak momentum. RSI at 49.5 indicates neutral conditions, while MACD at 3.20 shows mild bullish divergence. Price is consolidating between support (~₹250–₹255) and resistance (~₹270–₹280). Volume (7.25L) is slightly above weekly average (5.95L), suggesting moderate participation.
🎯 Entry/Exit Zones:
- Buy Zone: ₹250–₹255 (near support)
- Stop-Loss: ₹240
- Exit Levels: ₹270–₹280 (short-term resistance), ₹300–₹310 (major resistance near 50 DMA)
📈 Trend Status: Consolidating with weak bias; price below moving averages, RSI neutral, and MACD mildly positive. Momentum remains fragile, with potential reversal only if price sustains above ₹270–₹280.
✅ Positive
- EPS at ₹7.86 supports earnings visibility
- Strong ROCE (30.6%) and ROE (28.4%)
- Dividend yield at 1.73% provides investor support
- Volume slightly above weekly average
⚠️ Limitation
- Price below both 50 DMA and 200 DMA, weak technical trend
- Quarterly PAT declined sharply (₹147 Cr → ₹57.7 Cr)
- PEG ratio -9.44 indicates poor growth-adjusted valuation
- FII holdings reduced (-0.05%) and DII holdings reduced (-0.75%)
📉 Company Negative News
- Sharp profit decline impacting sentiment
- Correction from 52-week high (₹464 → ₹255)
- Institutional outflows (FII/DII reduction)
📊 Company Positive News
- Strong ROCE and ROE compared to peers
- Dividend yield at 1.73% supports investor confidence
- Volume participation slightly above average
🏦 Industry
- Industry PE at 21.6, lower than SONATSOFTW’s PE (29.2)
- IT services sector remains cyclical with margin pressures
- Peers with stronger earnings growth may attract more investor interest
📝 Conclusion
SONATSOFTW is consolidating near support with neutral RSI and mild MACD positivity, but weak fundamentals and declining profits limit upside. Best suited for cautious swing trades with entry near ₹250–₹255 and exit around ₹270–₹280; long-term investors should wait for earnings recovery before accumulation.
Would you like me to also prepare a short-term intraday trade rating (1–5) for SONATSOFTW, so you can compare its immediate trading potential with this swing trade outlook?