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STARHEALTH - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.8

Last Updated Time : 02 Feb 26, 09:58 am

Technical Rating: 3.8

Stock Code STARHEALTH Market Cap 27,725 Cr. Current Price 472 ₹ High / Low 534 ₹
Stock P/E 62.1 Book Value 0.00 ₹ Dividend Yield 0.00 % ROCE 12.0 %
ROE 9.37 % Face Value 10.0 ₹ DMA 50 456 ₹ DMA 200 458 ₹
Chg in FII Hold 0.56 % Chg in DII Hold -0.13 % PAT Qtr 128 Cr. PAT Prev Qtr 54.9 Cr.
RSI 63.7 MACD -1.48 Volume 6,09,478 Avg Vol 1Wk 16,44,658
Low price 327 ₹ High price 534 ₹ PEG Ratio 1.65 52w Index 69.8 %
Qtr Profit Var -40.4 % EPS 7.59 ₹ Industry PE 33.2

📊 Technical Analysis

  • Chart Patterns: Stock is trading slightly above both 50 DMA (456 ₹) and 200 DMA (458 ₹), showing consolidation with mild bullish bias.
  • Moving Averages: Current price (472 ₹) above both averages → supportive of short-term bullish momentum.
  • RSI: 63.7 → approaching overbought zone, suggesting caution for further upside.
  • MACD: -1.48 → mild bearish crossover, indicating short-term weakness despite overall uptrend.
  • Bollinger Bands: Price near upper band, showing strong momentum but risk of pullback.
  • Volume Trends: Current volume (6.09 lakh) well below 1-week average (16.4 lakh), showing reduced participation.

📈 Momentum & Signals

  • Short-term Momentum: Neutral to bullish, supported by price above DMA but capped by RSI nearing overbought.
  • Entry Zone: 460–470 ₹ (near DMA support).
  • Exit Zone: 490–500 ₹ (near resistance zone).
  • Trend Status: Consolidating with bullish tilt; reversal possible only if price sustains above 490 ₹.

✅ Positive

  • PAT improved sequentially (54.9 Cr. → 128 Cr.).
  • EPS of 7.59 ₹ reflects earnings growth.
  • FII holdings increased by 0.56%, showing foreign investor confidence.
  • 52-week index performance at 69.8% highlights strong relative strength.

⚠️ Limitation

  • High P/E of 62.1 compared to industry PE of 33.2.
  • Dividend yield of 0.00% limits income appeal.
  • Book value not available, reducing valuation clarity.
  • Volume participation lower than average, indicating cautious trading activity.

📉 Company Negative News

  • Quarterly profit variation shows decline (-40.4%).
  • DII holdings decreased by -0.13%, showing reduced domestic institutional confidence.

📈 Company Positive News

  • Sequential PAT growth (+133%) shows strong earnings recovery.
  • FII inflows indicate renewed foreign interest.

🏭 Industry

  • Industry PE at 33.2, much lower than STARHEALTH’s 62.1, suggesting sector peers may be more attractively valued.
  • Insurance sector remains growth-oriented with rising demand for health coverage.

🔎 Conclusion

  • STARHEALTH is consolidating near support levels with mixed signals: bullish DMA setup but weak MACD and high RSI.
  • Short-term traders may consider entry around 460–470 ₹ with exit near 490–500 ₹.
  • Long-term investors should be cautious due to high valuation and modest efficiency metrics despite strong sequential earnings recovery.

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