SUPREMEIND - Technical Analysis with Chart Patterns & Indicators
← Back to ListKey Parameters
⭐ Technical Rating: 3.5
Show all parameters (20 more)
🧾 Chart Verdict
Short-term entry zones could be established between 3,420 ₹ (support level based on the 200 DMA) and 3,550 ₹ (resistance from the recent high). An exit strategy would involve a stop-loss order placed just below the 3,420 ₹ level. The stock is exhibiting mixed signals, trending cautiously upwards but remaining significantly overvalued relative to its industry peers, leaning towards a neutral outlook with an emphasis on monitoring volume and potential breach of the 3,550 ₹ resistance level for confirmation of further upside.
✅ Positive
The current price action is bouncing off the 200-day moving average (DMA 200) at 3,621 ₹ and showing signs of renewed momentum with increasing volume. Additionally, the RSI reading of 55.8 suggests that the stock isn’t overbought, indicating potential for further upward movement.
⚠️ Limitation
Despite the recent bounce and positive RSI, the stock remains significantly overvalued relative to its industry (Stock P/E: 46.8 vs Industry PE: 20.4), which could trigger a correction if market sentiment shifts. The negative MACD reading of -27.8 suggests that momentum is still largely tilted downwards, though diminishing.
📉 Company Negative News
Investec’s “double upgrade” was accompanied by a significant drop in profit for the current quarter (PAT Qtr: 208 Cr., PAT Prev Qtr: 382 Cr.), suggesting that this upgrade may be based on future projections rather than immediate performance. The Supreme Industries publishes 4th Sustainability Report for FY 2026 - scanx.trade offers a long-term strategic outlook but doesn't materially impact short-term trading decisions.
🏭 Industry
The packaging industry is currently experiencing moderate growth driven by increasing demand for flexible packaging solutions, however, valuations are typically lower than the overall market due to cyclicality and competitive pressures. A high P/E ratio suggests Supreme Industries may be benefiting from specific tailwinds or strategic investments that aren’t fully reflected in its current valuation.