STARHEALTH - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.1

📈 Chart & Trend Analysis:

STARHEALTH is trading at ₹467, slightly below its 50 DMA (₹476) but above its 200 DMA (₹462), indicating mixed momentum. RSI at 37.2 suggests the stock is approaching oversold territory, hinting at potential rebound opportunities. MACD at -7.41 is negative, confirming bearish undertone. Price is mid-range between its 52-week high (₹534) and low (₹327). Bollinger Bands show price leaning toward the lower band, reflecting downside pressure. Current volume (2.95 lakh) is below the weekly average (5.0 lakh), suggesting reduced participation.

🔑 Momentum Signals:

- RSI near 37 indicates weak momentum, potential for rebound if support holds.

- MACD negative, confirming bearish continuation.

- Price hovering around 200 DMA signals consolidation.

- Lower-than-average volume shows cautious sentiment.

🎯 Entry & Exit Zones:

- Support: ₹460 – ₹465 (near 200 DMA).

- Resistance: ₹475 – ₹480 (near 50 DMA).

- Optimal Entry: ₹460 – ₹465 range for rebound trades.

- Exit/Profit Booking: ₹475 – ₹480 unless breakout occurs.

📊 Trend Status:

The stock is consolidating with bearish undertones. Oversold RSI may trigger a short-term relief rally, but sustained strength requires price to move above 50 DMA.

Positive

• EPS at ₹9.07 reflects earnings base.
• Strong ROCE (12.0%) and ROE (9.37%) highlight operational efficiency.
• DII holdings increased slightly (+0.01%), showing domestic investor support.
• Debt-to-equity ratio at 0.06 ensures financial stability.

Limitation

• Price trading below 50 DMA, showing short-term weakness.
• MACD negative, signaling bearish momentum.
• High P/E ratio (51.6) compared to industry average (42.8).
• Dividend yield at 0.00%, offering no income return.

Company Negative News

• Quarterly PAT declined sharply to ₹54.9 Cr from ₹263 Cr.
• Quarterly profit variation at -50.7% shows weak momentum.
• FII holdings reduced (-0.38%), reflecting weaker foreign investor confidence.

Company Positive News

• DII holdings increased (+0.01%), showing domestic investor support.
• Stock trading well above its 52-week low (₹327), showing resilience despite correction.

Industry

• Industry P/E at 42.8, STARHEALTH trades at a premium valuation (P/E 51.6).
• Insurance sector showing cyclical demand recovery.
• Peers trade at lower multiples, making STARHEALTH relatively expensive but backed by brand strength.

Conclusion

⚠️ STARHEALTH is consolidating with bearish undertones. Entry near ₹460–₹465 may be considered for rebound trades, while resistance at ₹475–₹480 is critical for trend reversal. Strong fundamentals support medium-term stability, but weak technicals and declining profits warrant cautious positioning.