SUMICHEM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | SUMICHEM | Market Cap | 20,865 Cr. | Current Price | 417 ₹ | High / Low | 665 ₹ |
| Stock P/E | 38.5 | Book Value | 64.0 ₹ | Dividend Yield | 0.29 % | ROCE | 25.1 % |
| ROE | 18.8 % | Face Value | 10.0 ₹ | DMA 50 | 450 ₹ | DMA 200 | 497 ₹ |
| Chg in FII Hold | -0.28 % | Chg in DII Hold | 0.18 % | PAT Qtr | 86.2 Cr. | PAT Prev Qtr | 178 Cr. |
| RSI | 41.0 | MACD | -13.2 | Volume | 3,51,844 | Avg Vol 1Wk | 8,47,864 |
| Low price | 396 ₹ | High price | 665 ₹ | PEG Ratio | 7.68 | Debt to equity | 0.02 |
| 52w Index | 7.83 % | Qtr Profit Var | 2.27 % | EPS | 10.6 ₹ | Industry PE | 27.7 |
📈 Chart Patterns & Trend: SUMICHEM is trading at 417 ₹, well below its 50 DMA (450 ₹) and 200 DMA (497 ₹), indicating a bearish bias. RSI at 41.0 suggests the stock is approaching oversold territory but not yet deeply undervalued. MACD at -13.2 shows bearish momentum. Bollinger Bands indicate price is near the lower band, hinting at possible short-term support but overall weakness.
📊 Volume Trends: Current volume (3.5 lakh) is significantly lower than the 1-week average (8.4 lakh), showing declining participation and weak buying interest.
🎯 Momentum Signals:
- Price below both 50 DMA and 200 DMA confirms short-term downtrend.
- RSI near 40 signals potential for a technical bounce but trend remains weak.
- MACD negative, reinforcing bearish sentiment.
💡 Entry Zone: 400–410 ₹ (near recent support).
🚪 Exit Zone: 445–455 ₹ (near 50 DMA resistance).
🔎 Overall Trend: The stock is reversing from highs and currently in a bearish phase. Consolidation may occur near 400 ₹, but sustained recovery requires crossing 450–455 ₹.
Positive
- Strong ROCE of 25.1% and ROE of 18.8% indicate efficient capital use.
- Low debt-to-equity ratio (0.02) shows financial stability.
- DII holdings increased (+0.18%), reflecting domestic institutional support.
Limitation
- Stock trading below both 50 DMA and 200 DMA, confirming weakness.
- High P/E of 38.5 compared to industry PE of 27.7, suggesting overvaluation.
- PEG ratio of 7.68 highlights poor growth-to-valuation balance.
- Volume trends show declining investor interest.
Company Negative News
- Quarterly PAT dropped sharply from 178 Cr. to 86.2 Cr.
- FII holdings decreased (-0.28%), showing reduced foreign investor confidence.
Company Positive News
- Quarterly profit variation shows slight improvement (+2.27%).
- EPS of 10.6 ₹ supports long-term valuation despite short-term weakness.
- Strong fundamentals with high ROCE and low debt.
Industry
- Industry PE at 27.7 is lower than SUMICHEM’s PE, indicating premium valuation.
- Chemical sector remains cyclical but supported by demand in agriculture and specialty chemicals.
- Peers may offer better valuation, but SUMICHEM has strong fundamentals.
Conclusion
SUMICHEM is in a bearish phase, trading below key moving averages with weak momentum signals. Entry near 400–410 ₹ offers limited risk, while resistance lies at 445–455 ₹. The stock needs stronger volume and a break above 450 ₹ to confirm reversal. Long-term fundamentals remain strong, but short-term traders should be cautious until momentum improves.
Would you like me to also prepare a comparative technical snapshot of SUMICHEM vs SAIL vs SBIN so you can quickly see which stock offers the best short-term setup?