SUNPHARMA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | SUNPHARMA | Market Cap | 4,33,872 Cr. | Current Price | 1,808 ₹ | High / Low | 1,851 ₹ |
| Stock P/E | 99.4 | Book Value | 99.2 ₹ | Dividend Yield | 0.88 % | ROCE | 16.8 % |
| ROE | 17.8 % | Face Value | 1.00 ₹ | DMA 50 | 1,724 ₹ | DMA 200 | 1,713 ₹ |
| Chg in FII Hold | -0.18 % | Chg in DII Hold | 0.28 % | PAT Qtr | 872 Cr. | PAT Prev Qtr | 564 Cr. |
| RSI | 63.0 | MACD | 2.98 | Volume | 49,60,661 | Avg Vol 1Wk | 1,49,37,644 |
| Low price | 1,547 ₹ | High price | 1,851 ₹ | PEG Ratio | 1.36 | Debt to equity | 0.56 |
| 52w Index | 85.9 % | Qtr Profit Var | -24.6 % | EPS | 16.7 ₹ | Industry PE | 30.1 |
📈 Chart Patterns & Trend: SUNPHARMA is trading close to its 52-week high (₹1,851) with current price at ₹1,808. The stock is trending upward but showing signs of slowing momentum. Price remains above both 50 DMA (₹1,724) and 200 DMA (₹1,713), confirming bullish bias.
📊 Indicators: RSI at 63.0 indicates moderately strong momentum but nearing overbought levels. MACD positive at 2.98 suggests short-term bullish crossover. Bollinger Bands show price near upper band, signaling stretched momentum.
🔎 Volume: Current volume (49.6 Lakh) is significantly below average weekly volume (1.49 Cr.), indicating reduced participation at higher levels.
🎯 Entry Zone: ₹1,770–₹1,790 (near 50 DMA support)
🚪 Exit Zone: ₹1,840–₹1,850 (resistance near 52-week high)
Positive
- Strong ROE (17.8%) and ROCE (16.8%) indicate healthy efficiency.
- EPS of ₹16.7 and consistent dividend yield of 0.88%.
- Price trading above both 50 DMA and 200 DMA confirms bullish structure.
- DII holdings increased by 0.28%, showing domestic investor confidence.
Limitation
- High P/E of 99.4 compared to industry average (30.1).
- Quarterly profit decline (-24.6%) raises earnings concerns.
- FII holdings decreased by 0.18%, showing reduced foreign interest.
- Volume participation is weakening near highs.
Company Negative News
- Recent quarterly profit decline highlights earnings volatility.
- High valuation multiples may limit upside if growth slows.
Company Positive News
- Strong long-term fundamentals with consistent dividend payout.
- Domestic institutional investors increased stake, reflecting confidence.
Industry
- Pharma industry PE at 30.1 is much lower than SUNPHARMA’s 99.4, indicating premium valuation.
- Sector outlook remains positive with demand recovery and innovation pipeline.
Conclusion
SUNPHARMA is trending upward near its 52-week high with bullish signals from MACD and moving averages. Entry near ₹1,770–₹1,790 offers favorable risk-reward, with exit around ₹1,840–₹1,850. Fundamentals remain strong, but high valuations and profit decline warrant cautious positioning.
Would you like me to also prepare a short-term intraday trading setup for SUNPHARMA, with tighter entry/exit levels and momentum triggers, alongside this swing/investment view?