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SUMICHEM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | SUMICHEM | Market Cap | 19,372 Cr. | Current Price | 388 ₹ | High / Low | 665 ₹ |
| Stock P/E | 35.7 | Book Value | 64.0 ₹ | Dividend Yield | 0.31 % | ROCE | 25.1 % |
| ROE | 18.8 % | Face Value | 10.0 ₹ | DMA 50 | 414 ₹ | DMA 200 | 472 ₹ |
| Chg in FII Hold | -0.28 % | Chg in DII Hold | 0.18 % | PAT Qtr | 86.2 Cr. | PAT Prev Qtr | 178 Cr. |
| RSI | 41.4 | MACD | -8.52 | Volume | 4,51,458 | Avg Vol 1Wk | 3,37,915 |
| Low price | 367 ₹ | High price | 665 ₹ | PEG Ratio | 7.13 | Debt to equity | 0.02 |
| 52w Index | 7.22 % | Qtr Profit Var | 2.27 % | EPS | 10.6 ₹ | Industry PE | 22.2 |
📊 Technical Analysis
- Chart Patterns: Stock trending downward from highs of ₹665, currently near support at ₹367–₹388. Resistance lies around ₹414 (50 DMA).
- Moving Averages: Price (₹388) below both 50 DMA (₹414) and 200 DMA (₹472), indicating bearish trend.
- RSI: 41.4 — approaching oversold zone, suggesting limited downside.
- MACD: -8.52 — bearish crossover, confirming negative momentum.
- Bollinger Bands: Price near lower band, oversold condition may trigger short-term bounce.
- Volume Trends: Current volume (4.51 Lakh) above 1-week average (3.37 Lakh), showing increased selling pressure.
📈 Momentum & Signals
- Short-term Momentum: Weak, with bearish bias but oversold signals hint at possible rebound.
- Entry Zone: ₹370–₹385 (support region).
- Exit Zone: ₹410–₹430 (resistance region).
- Trend Status: Reversing from uptrend to bearish consolidation.
✅ Positive
- Strong ROCE (25.1%) and ROE (18.8%) indicate efficient capital use.
- Low debt-to-equity ratio (0.02), financially stable.
- DII holdings increased (+0.18%).
⚠️ Limitation
- Stock P/E (35.7) significantly higher than industry average (22.2).
- PEG ratio at 7.13, showing expensive valuation relative to growth.
- Price below both 50 DMA and 200 DMA, confirming bearish trend.
- FII holdings decreased (-0.28%).
📉 Company Negative News
- Sequential PAT decline (₹86.2 Cr vs ₹178 Cr).
- 52-week performance weak (7.22%), underperforming peers.
📈 Company Positive News
- Strong efficiency metrics (ROCE 25.1%, ROE 18.8%).
- Low leverage ensures financial stability.
- EPS at ₹10.6, supported by consistent profitability.
🏭 Industry
- Chemicals sector PE at 22.2, showing moderate valuations.
- Industry supported by demand in agrochemicals and specialty chemicals.
🔎 Conclusion
- SUMICHEM is in a bearish phase, trading below key moving averages.
- Oversold RSI and Bollinger Band signals suggest potential rebound near ₹370–₹385.
- Short-term traders can accumulate near support and exit around ₹410–₹430.
- Long-term investors should be cautious due to high valuations and weak recent profit trend.