SUNDARMFIN - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.7

Technical Analysis Report for Sundaram Finance Ltd (SUNDARMFIN)

• Trend Status: Consolidating near key moving averages
• Moving Averages: Price slightly below 50 DMA (₹4,589) and 200 DMA (₹4,685) — neutral to mildly bearish
• RSI: 53.2 — neutral zone, no strong directional bias
• MACD: Positive at 27.1 — bullish crossover, early momentum signal
• Bollinger Bands: Price near mid-band — range-bound movement
• Volume: Below weekly average — low conviction in current price action

Entry & Exit Zones

• Support Levels: ₹4,450 (minor support), ₹4,300 (trendline), ₹3,925 (52-week low)
• Resistance Levels: ₹4,589 (DMA 50), ₹4,685 (DMA 200), ₹4,850 (gap zone)
• Optimal Entry: ₹4,400–₹4,480 (on confirmation of support)
• Optimal Exit: ₹4,680–₹4,850 (if reversal sustains)

Positive

• MACD positive — early signs of bullish momentum
• EPS of ₹150 — strong earnings base
• ROE (14.7%) and ROCE (9.71%) — healthy profitability metrics
• FII holding increased by 0.25% — foreign investor confidence

Limitation

• Price below both 50 and 200 DMA — trend still under pressure
• Volume below average — weak participation
• Debt-to-equity ratio of 4.25 — high leverage typical of NBFCs

Company Negative News

• Quarterly PAT declined from ₹546 Cr. to ₹429 Cr. — sequential earnings drop
• DII holding declined by 0.45% — slight domestic institutional outflow

Company Positive News

• Quarterly profit variation of 39.4% YoY — strong annual growth
• PEG ratio of 1.57 — reasonable growth-adjusted valuation

Industry

• NBFC sector — cyclical with sensitivity to interest rates and credit demand
• Industry P/E of 22.6 — SUNDARMFIN trades at a premium (P/E of 30.1)

Conclusion

Sundaram Finance Ltd is currently consolidating near its key moving averages with early signs of bullish momentum. While MACD and earnings strength support a potential upside, weak volume and high leverage warrant caution. Traders may consider entries near ₹4,400 with exits around ₹4,850, watching for confirmation through volume and RSI strength.