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SRF - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.4

Last Updated Time : 24 May 26, 10:34 pm

Technical Rating: 3.4

Stock Code SRF Market Cap 78,453 Cr. Current Price 2,646 ₹ High / Low 3,325 ₹
Stock P/E 43.8 Book Value 428 ₹ Dividend Yield 0.34 % ROCE 15.9 %
ROE 14.8 % Face Value 10.0 ₹ DMA 50 2,614 ₹ DMA 200 2,750 ₹
Chg in FII Hold -0.81 % Chg in DII Hold 0.99 % PAT Qtr 515 Cr. PAT Prev Qtr 528 Cr.
RSI 52.2 MACD 28.9 Volume 5,31,819 Avg Vol 1Wk 3,94,392
Low price 2,314 ₹ High price 3,325 ₹ PEG Ratio -11.2 Debt to equity 0.27
52w Index 32.9 % Qtr Profit Var 0.45 % EPS 58.2 ₹ Industry PE 19.7

📈 Chart & Trend Analysis

  • Moving Averages: Current price (₹2,646) is above 50 DMA (₹2,614) but below 200 DMA (₹2,750), showing short-term strength but medium-term weakness.
  • RSI: At 52.2, the stock is neutral, neither overbought nor oversold.
  • MACD: Positive (28.9), indicating bullish momentum building.
  • Bollinger Bands: Price is near the mid-band, suggesting consolidation with potential upside.
  • Volume Trends: Current volume (5,31,819) is above 1-week average (3,94,392), showing strong participation in recent moves.

📊 Momentum & Signals

  • Short-term momentum: Positive, supported by MACD and volume strength.
  • Support Zone: ₹2,600 – ₹2,620 (near-term support).
  • Resistance Zone: ₹2,750 – ₹2,800 (200 DMA and psychological barrier).
  • Entry Zone: ₹2,620 – ₹2,640 (near support, bullish signals).
  • Exit Zone: ₹2,750 – ₹2,800 (resistance levels).

📉 Trend Status

The stock is currently in a consolidation phase with bullish bias. Sustained move above ₹2,750 could confirm a reversal into an uptrend.

✅ Positive

  • Strong ROCE (15.9%) and ROE (14.8%) indicate efficient capital use.
  • Debt-to-equity ratio at 0.27 shows low leverage.
  • EPS of ₹58.2 reflects solid earnings power.

⚠️ Limitation

  • High P/E ratio (43.8) compared to industry average (19.7), making valuation expensive.
  • Dividend yield is low (0.34%), limiting income appeal.
  • Negative PEG ratio (-11.2), suggesting poor growth-adjusted valuation.

📰 Company Negative News

  • Decline in FII holding (-0.81%), showing reduced foreign investor confidence.
  • PAT slightly declined (₹515 Cr vs ₹528 Cr previous quarter).

🌟 Company Positive News

  • DII holding increased (+0.99%), reflecting strong domestic institutional support.
  • Stable quarterly profit variation (0.45%) despite sector challenges.

🏦 Industry

  • Industry PE at 19.7, much lower than SRF’s 43.8, suggesting peers are cheaper.
  • Chemical and industrial sector demand remains steady with global recovery trends.

📌 Conclusion

SRF is in a consolidation phase with bullish signals from MACD and volume. Entry near ₹2,620 – ₹2,640 with exit around ₹2,750 – ₹2,800 is optimal for short-term traders. Long-term investors should weigh strong fundamentals against high valuations.

Technical Analysis
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