STARHEALTH - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.7

Technical Analysis Report for Star Health and Allied Insurance Co Ltd (STARHEALTH)

• Trend Status: Trending upward with moderate momentum
• Moving Averages: Price above both 50 DMA (₹465) and 200 DMA (₹453) — bullish alignment
• RSI: 53.4 — neutral zone, slight bullish bias
• MACD: Positive at 8.72 — bullish crossover, confirms upward momentum
• Bollinger Bands: Price near upper band — continuation possible but watch for volatility
• Volume: Below weekly average — momentum slowing, needs confirmation

Entry & Exit Zones

• Support Levels: ₹465 (DMA 50), ₹453 (DMA 200), ₹440 (trendline)
• Resistance Levels: ₹505 (minor resistance), ₹519 (52-week high)
• Optimal Entry: ₹460–₹470 (on pullback or consolidation)
• Optimal Exit: ₹510–₹520 (if momentum sustains)

Positive

• MACD and price action above key DMAs — confirms bullish momentum
• ROCE (12.0%) and ROE (9.37%) — moderate efficiency
• Debt-to-equity ratio of 0.06 — low leverage

Limitation

• Volume significantly below average — weak participation
• High P/E of 54.7 vs industry average of 44.4 — premium valuation
• Quarterly profit variation of -50.7% — sharp sequential decline

Company Negative News

• Quarterly PAT dropped from ₹263 Cr. to ₹54.9 Cr. — significant earnings contraction
• FII holding declined by 0.38% — reduced foreign investor confidence

Company Positive News

• DII holding increased by 0.01% — marginal domestic institutional support
• EPS of ₹9.07 — stable earnings base

Industry

• Health insurance sector — long-term growth driven by rising awareness and regulatory support
• Industry P/E of 44.4 — STARHEALTH trades at a premium

Conclusion

Star Health is currently trending upward with bullish technical indicators but weakening volume. While fundamentals are stable and price action is positive, traders should watch for confirmation through volume and earnings recovery. Consider entries near ₹460 with exits around ₹520, keeping an eye on resistance and institutional flows.