SUPREMEIND - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.0

📊 Chart Patterns: SUPREMEIND is trading below both its 50 DMA (3,649 ₹) and 200 DMA (4,025 ₹), showing weakness. Support lies near 3,020 ₹, while resistance is around 3,650–4,025 ₹. The broader chart suggests a downward trend with consolidation near lows.

📈 Moving Averages: Current price (3,360 ₹) is below both 50 DMA and 200 DMA, signaling bearish momentum.

📉 RSI: At 39.4, RSI is close to oversold territory, suggesting weak momentum but potential for a short-term bounce.

📉 MACD: Strongly negative (-111), confirming bearish crossover and continued downside pressure.

📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible mean reversion in the short term.

📊 Volume Trends: Current volume (1,62,270) is significantly lower than average weekly volume (5,95,521), showing weak participation and lack of buying interest.

🚦 Momentum Signals: Short-term momentum remains bearish. A bounce may occur if RSI dips further into oversold levels, but recovery requires crossing 3,650 ₹.

🎯 Entry Zone: 3,100–3,200 ₹ (near support).

🎯 Exit Zone: 3,650–4,025 ₹ (resistance at 50 & 200 DMA).

📌 Trend Status: The stock is consolidating with bearish bias, not yet reversing into an uptrend.

Positive

• Strong ROCE (23.7%) and ROE (18.1%) indicate efficient capital usage.
• Low debt-to-equity ratio (0.06) ensures financial stability.
• Dividend yield of 1.01% provides steady income to shareholders.

Limitation

• High P/E (52.6) compared to industry average (23.4) suggests overvaluation.
• PEG ratio of 24.2 indicates expensive growth prospects.
• Weak technicals with price below both 50 & 200 DMA.

Company Negative News

• Quarterly profit variation (-11.9%) shows slowing momentum.
• FII holdings decreased by -1.28%, reflecting reduced foreign investor confidence.

Company Positive News

• DII holdings increased by 1.37%, showing domestic institutional support.
• PAT improved sequentially from 177 Cr. to 193 Cr.

Industry

• Industry P/E at 23.4 indicates moderate valuation compared to SUPREMEIND’s elevated levels.
• Plastics and industrial manufacturing sector remains cyclical but supported by infrastructure and consumer demand.

Conclusion

⚖️ SUPREMEIND is consolidating with bearish bias, trading below key moving averages. Short-term traders may consider entry near 3,100–3,200 ₹ with exit around 3,650–4,025 ₹. Long-term investors should be cautious due to high valuations and weak momentum, but strong fundamentals and low debt provide resilience.