SUMICHEM - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.0

Technical Analysis Report for Sumitomo Chemical India Ltd (SUMICHEM)

• Trend Status: Reversing from highs, testing support zones
• Moving Averages: Price below both 50 DMA (₹542) and 200 DMA (₹538) — bearish alignment
• RSI: 35.0 — weak momentum, approaching oversold territory
• MACD: Negative at -11.5 — bearish crossover, trend weakening
• Bollinger Bands: Price near lower band — oversold signal, potential for technical bounce
• Volume: Below weekly average — low conviction in current price action

Entry & Exit Zones

• Support Levels: ₹490 (minor support), ₹470 (trendline), ₹446 (52-week low)
• Resistance Levels: ₹538 (DMA 200), ₹542 (DMA 50), ₹565 (gap zone)
• Optimal Entry: ₹490–₹500 (on confirmation of support)
• Optimal Exit: ₹540–₹565 (if reversal sustains)

Positive

• Strong ROCE (25.1%) and ROE (18.8%) — efficient capital deployment
• Debt-to-equity ratio of 0.02 — virtually debt-free
• DII holding increased by 0.32% — domestic institutional support

Limitation

• Price below key moving averages — weak technical structure
• MACD and RSI indicate bearish momentum
• PEG ratio of 9.26 — expensive on growth-adjusted basis

Company Negative News

• Quarterly PAT declined from ₹180 Cr. to ₹178 Cr. — slight sequential drop

Company Positive News

• EPS of ₹10.8 — stable earnings base
• FII holding remained unchanged — neutral foreign sentiment

Industry

• Agrochemicals and specialty chemicals — cyclical with seasonal demand and regulatory sensitivity
• Industry P/E of 32.2 — SUMICHEM trades at a premium (P/E of 46.4)

Conclusion

Sumitomo Chemical India Ltd is currently reversing from its highs and testing support near ₹490. While fundamentals remain strong and institutional support is visible, technical indicators suggest caution. Traders may consider entries near ₹490 with exits around ₹565, watching for MACD reversal and volume recovery to confirm trend strength.