SRF - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.3

📈 Chart & Trend Analysis:

SRF is currently trading at ₹3,090, comfortably above its 50 DMA (₹2,934) and 200 DMA (₹2,898), signaling a strong bullish bias. RSI at 64.1 indicates healthy momentum without being overbought. MACD at 32.2 is positive, confirming upward momentum. Price is near the upper Bollinger Band, suggesting short-term resistance. Volume (5,81,365) is higher than the weekly average (4,98,797), reinforcing accumulation strength.

🔑 Momentum Signals:

- RSI near 65 shows strong momentum but not overheated.

- MACD positive crossover supports bullish continuation.

- Price above both DMAs confirms trend strength.

- Elevated volume validates buying interest.

🎯 Entry & Exit Zones:

- Support: ₹2,930 – ₹2,950 (near 50 DMA).

- Resistance: ₹3,300 – ₹3,325 (recent high).

- Optimal Entry: ₹2,950 – ₹3,000 on dips.

- Exit/Profit Booking: ₹3,300 – ₹3,325 unless breakout occurs.

📊 Trend Status:

The stock is trending upward with bullish signals. No signs of consolidation or reversal at present.

Positive

• Price trading above both 50 DMA and 200 DMA.
• Strong EPS at ₹52.4 with consistent profitability.
• Quarterly profit variation of 61.1% YoY shows growth momentum.
• Low debt-to-equity ratio (0.25) ensures balance sheet strength.

Limitation

• High valuation with P/E of 59.0 vs industry average of 20.0.
• Negative PEG ratio (-10.6) indicates weak growth-adjusted valuation.
• Dividend yield is very low (0.24%).

Company Negative News

• Quarterly PAT declined to ₹363 Cr from ₹397 Cr in the previous quarter.
• FII holdings reduced (-0.26%), showing reduced foreign investor confidence.

Company Positive News

• DII holdings increased (+0.68%), reflecting domestic investor confidence.
• Stock trading near 52-week high (₹3,325), showing strong momentum.
• ROCE at 13.7% and ROE at 11.5% remain stable.

Industry

• Industry P/E at 20.0, SRF trades at a premium valuation.
• Chemicals sector showing cyclical demand recovery.
• Peers trade at lower multiples, SRF commands premium due to strong fundamentals.

Conclusion

🚀 SRF is in a bullish trend with strong technical signals. Entry near ₹2,950–₹3,000 offers favorable risk-reward, while resistance at ₹3,325 is the key breakout level. Despite valuation concerns, momentum and fundamentals support near-term upside. Traders may ride the trend with caution around resistance zones.