SUNPHARMA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | SUNPHARMA | Market Cap | 3,86,390 Cr. | Current Price | 1,610 ₹ | High / Low | 1,851 ₹ |
| Stock P/E | 88.6 | Book Value | 99.2 ₹ | Dividend Yield | 0.99 % | ROCE | 16.8 % |
| ROE | 17.8 % | Face Value | 1.00 ₹ | DMA 50 | 1,699 ₹ | DMA 200 | 1,698 ₹ |
| Chg in FII Hold | -0.43 % | Chg in DII Hold | 0.60 % | PAT Qtr | 872 Cr. | PAT Prev Qtr | 564 Cr. |
| RSI | 34.2 | MACD | -39.0 | Volume | 25,08,565 | Avg Vol 1Wk | 38,97,489 |
| Low price | 1,547 ₹ | High price | 1,851 ₹ | PEG Ratio | 1.21 | Debt to equity | 0.56 |
| 52w Index | 20.7 % | Qtr Profit Var | -24.6 % | EPS | 16.7 ₹ | Industry PE | 29.0 |
📈 Chart Patterns & Trend: SUNPHARMA is trading at 1,610 ₹, below both the 50 DMA (1,699 ₹) and 200 DMA (1,698 ₹), signaling weakness. RSI at 34.2 indicates the stock is approaching oversold territory. MACD at -39.0 confirms bearish momentum. Bollinger Bands show price near the lower band, suggesting possible short-term support but overall downtrend.
📊 Volume Trends: Current volume (25 lakh) is significantly lower than the 1-week average (39 lakh), reflecting reduced participation and weak buying interest.
🎯 Momentum Signals:
- Price below both 50 DMA and 200 DMA confirms bearish bias.
- RSI near oversold zone may trigger a technical bounce.
- MACD negative, reinforcing bearish sentiment.
💡 Entry Zone: 1,550–1,580 ₹ (near recent support).
🚪 Exit Zone: 1,690–1,710 ₹ (near 50 DMA resistance).
🔎 Overall Trend: The stock is reversing from highs and currently in a bearish phase. Sustained recovery requires crossing 1,700 ₹ with volume support.
Positive
- Strong ROE of 17.8% and ROCE of 16.8% indicate efficient capital use.
- DII holdings increased (+0.60%), showing domestic institutional confidence.
- EPS of 16.7 ₹ supports long-term valuation.
- Low debt-to-equity ratio (0.56) reflects financial stability.
Limitation
- Stock trading below both 50 DMA and 200 DMA, confirming weakness.
- High P/E of 88.6 compared to industry PE of 29.0, suggesting overvaluation.
- Quarterly profit variation shows decline (-24.6%).
- FII holdings decreased (-0.43%), showing reduced foreign investor confidence.
Company Negative News
- Quarterly PAT dropped from 872 Cr. to 564 Cr., reflecting earnings pressure.
- Stock underperforming relative to sector peers due to valuation concerns.
Company Positive News
- Strong fundamentals with high ROE and ROCE.
- DII support increased, signaling domestic confidence.
- Dividend yield of 0.99% provides steady income for long-term investors.
Industry
- Industry PE at 29.0 is much lower than SUNPHARMA’s PE, highlighting premium valuation.
- Pharma sector remains resilient with global demand for generics and specialty drugs.
- Sector consolidation favors large-cap leaders like SUNPHARMA despite short-term weakness.
Conclusion
SUNPHARMA is in a bearish phase, trading below key moving averages with weak momentum signals. Entry near 1,550–1,580 ₹ offers limited risk, while resistance lies at 1,690–1,710 ₹. The stock needs stronger volume and a break above 1,700 ₹ to confirm reversal. Long-term fundamentals remain strong, but short-term traders should be cautious until momentum improves.
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