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SRF - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.5

Last Updated Time : 03 May 26, 11:25 am

Technical Rating: 3.5

Stock Code SRF Market Cap 74,658 Cr. Current Price 2,519 ₹ High / Low 3,325 ₹
Stock P/E 41.5 Book Value 406 ₹ Dividend Yield 0.36 % ROCE 13.7 %
ROE 11.5 % Face Value 10.0 ₹ DMA 50 2,566 ₹ DMA 200 2,762 ₹
Chg in FII Hold -0.81 % Chg in DII Hold 0.99 % PAT Qtr 528 Cr. PAT Prev Qtr 363 Cr.
RSI 50.8 MACD -2.95 Volume 4,19,375 Avg Vol 1Wk 3,63,922
Low price 2,314 ₹ High price 3,325 ₹ PEG Ratio -7.43 Debt to equity 0.25
52w Index 20.3 % Qtr Profit Var 88.5 % EPS 58.4 ₹ Industry PE 19.0

📊 Chart & Indicators: SRF is trading at ₹2,519, slightly below its 50 DMA (₹2,566) and well below 200 DMA (₹2,762), indicating medium-term weakness. RSI at 50.8 shows neutral momentum, while MACD at -2.95 signals mild bearishness. Price is consolidating between support (~₹2,480–₹2,500) and resistance (~₹2,560–₹2,580). Volume (4.19L) is slightly above weekly average (3.63L), suggesting active participation.

🎯 Entry/Exit Zones:

- Buy Zone: ₹2,480–₹2,520 (near support)

- Stop-Loss: ₹2,450

- Exit Levels: ₹2,560–₹2,580 (short-term resistance), ₹2,700–₹2,750 (major resistance near 200 DMA)

📈 Trend Status: Consolidating with neutral bias; RSI stable, MACD negative, and price below long-term averages. Short-term momentum is sideways with potential breakout if sustained above ₹2,580.

✅ Positive

  • Quarterly PAT growth: ₹528 Cr vs ₹363 Cr (+88.5%)
  • EPS strong at ₹58.4
  • DII holdings increased (+0.99%)
  • Low debt-to-equity ratio (0.25)

⚠️ Limitation

  • Stock P/E 41.5 vs Industry PE 19.0 → expensive valuation
  • PEG ratio -7.43 indicates poor growth-adjusted valuation
  • Price below 200 DMA, weak long-term trend
  • ROE (11.5%) and ROCE (13.7%) moderate compared to peers

📉 Company Negative News

  • Correction from 52-week high (₹3,325 → ₹2,519)
  • FII holdings reduced (-0.81%)
  • MACD negative, showing weak momentum

📊 Company Positive News

  • Strong quarterly profit growth (+88.5%)
  • Healthy EPS and dividend yield (0.36%)
  • Stable balance sheet with low leverage

🏦 Industry

  • Industry PE at 19.0, significantly lower than SRF
  • Chemical sector demand remains steady with export opportunities
  • Global commodity price volatility impacting margins

📝 Conclusion

SRF is consolidating near support with neutral RSI and weak MACD, offering cautious swing trade opportunities. Strong fundamentals (PAT growth, EPS, low debt) support long-term potential, but valuations are stretched and price remains below 200 DMA. Best suited for short-term trades with strict stop-loss; investors should wait for breakout above ₹2,580–₹2,600 for confirmation of trend reversal.

Would you like me to also prepare a long-term fundamental rating (1–5) for SRF, so you can directly compare its technical setup with its investment potential?

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