SUMICHEM - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 19 Sept 25, 2:16 pm

Technical Rating: 3.5

Here’s a detailed technical analysis of Sumitomo Chemical India Ltd. (SUMICHEM)

📊 Trend Analysis

Current Trend: The stock is in a consolidation phase, trading slightly below its 50 DMA (₹571) and above the 200 DMA (₹540). This suggests indecision after a recent pullback from its high of ₹665.

Momentum: Weak to neutral. RSI at 46.0 and MACD at -6.18 indicate fading momentum and lack of bullish conviction.

📈 Moving Averages

50 DMA: ₹571

200 DMA: ₹540

Current Price: ₹565

Interpretation: Price is sandwiched between the two moving averages. A decisive move above ₹571 would signal short-term strength; a drop below ₹540 could trigger a deeper correction.

📉 MACD & RSI

MACD: Negative, suggesting bearish momentum.

RSI: Neutral at 46.0 — no overbought or oversold signal, but leaning bearish.

Conclusion: Momentum indicators suggest caution. Wait for MACD flattening and RSI > 50 for bullish confirmation.

📊 Volume Trends

Current Volume: 1.78 lakh

1-Week Avg Volume: 2.34 lakh

Interpretation: Volume is below average, indicating low conviction. A volume spike near resistance would validate breakout strength.

📉 Bollinger Bands

Price is likely near the middle band, reinforcing the consolidation view. A breakout above ₹575 with volume would confirm bullish momentum.

📌 Support & Resistance Levels

Level Price (₹) Commentary

Support 1 540 200 DMA, strong base

Support 2 510 Previous swing low

Resistance 1 575 Near-term resistance zone

Resistance 2 610–630 Intermediate swing highs

Resistance 3 665 52-week high

🎯 Entry & Exit Zones

Optimal Entry: ₹540–₹555 (on pullback with confirmation)

Exit Zone: ₹610–₹630 (partial profit booking), ₹665+ (final target if breakout sustains)

🔍 Summary

Trend: Consolidating

Momentum: Weak

Bias: Cautious accumulation

Short-Term Strategy: Accumulate near ₹540–₹555 only if support holds. Avoid aggressive entries until price breaks above ₹575 with volume and MACD flattens.

Let me know if you'd like a visual chart setup or swing trade plan based on this!

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