SRF - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.4

Technical Analysis Report for SRF Ltd

• Trend Status: Consolidating near key moving averages
• Moving Averages: Price below 50 DMA (₹2,997) and hovering near 200 DMA (₹2,897) — neutral to weak bias
• RSI: 39.8 — approaching oversold zone, signaling potential reversal
• MACD: Positive at 13.9 — early bullish crossover indication
• Bollinger Bands: Price near lower band — oversold signal, possible bounce
• Volume: Below weekly average — weak momentum, low conviction

Entry & Exit Zones

• Support Levels: ₹2,897 (DMA 200), ₹2,850 (trendline), ₹2,800 (recent swing low)
• Resistance Levels: ₹2,997 (DMA 50), ₹3,044 (minor resistance), ₹3,108 (previous top)
• Optimal Entry: ₹2,880–₹2,910 (near support and reversal zone)
• Optimal Exit: ₹3,070–₹3,130 (near resistance and breakout zone)

Positive

• Low debt-to-equity ratio of 0.25 — strong balance sheet
• Healthy ROCE (13.7%) and ROE (11.5%) — efficient capital deployment
• MACD and RSI suggest potential short-term reversal

Limitation

• High P/E of 56.0 vs industry average of 22.5 — premium valuation
• Negative PEG ratio (-10.0) — poor growth-adjusted valuation
• Volume below average — weak participation in current price action

Company Negative News

• Quarterly PAT declined from ₹397 Cr. to ₹363 Cr. — margin pressure
• Foreign Institutional Investors reduced holdings by 0.26%

Company Positive News

• Domestic Institutional Investors increased holdings by 0.68%
• Quarterly profit variation of 61.1% — strong operational performance

Industry

• Specialty chemicals sector — long-term structural growth drivers
• Industry P/E of 22.5 — SRF trades at a significant premium

Conclusion

SRF Ltd is currently consolidating near its long-term support levels. Technical indicators suggest a potential short-term reversal, making it attractive for swing trades. However, valuation concerns and low volume warrant cautious positioning. Traders may consider entries near ₹2,880 with exits around ₹3,130, keeping tight stop-losses below ₹2,850.