“The stock has seen an up move in the last 5 sessions supported by good volumes. It has also surpassed its 200 DEMA of Rs 43.40 today which is a positive sign. A sustained move above the 200 DEMA could lead to an up move towards Rs 49-50 in the near term,” said Ruchit Jain, Vice President of Technical Research at Motilal Oswal.
Ajit Mishra, Senior Vice President at Religare Broking, however, flagged caution. “Sigachi has had a history of volatile swings since its listing. It has recently rebounded after testing the Rs 30 support zone and is now trading near Rs 43. The sharp rise in volume with a bullish candle indicates accumulation at lower levels. “However, the price is still below key moving averages (50, 100, 200 WEMA), suggesting that the broader trend remains weak. Sustaining above Rs 47 could extend the recovery toward 55–60, whereas failure to hold Rs 38-40 may trigger renewed weakness,” he said.
Technical indicators also suggest the rally may be overextended. Trendlyne data shows the Relative Strength Index at 79.3 and the Money Flow Index at 96.8—both in overbought territory—raising the risk of a near-term correction. While the MACD remains positive, supporting the current uptrend, analysts caution that fresh entry may be better timed after a pullback.
Volumes have spiked sharply, with about 13 crore shares changing hands on Monday, versus a one-week average of 7 crore and one-month average of 2 crore. In the previous session, as many as 22 crore shares were traded.
From a fundamental perspective, the rally comes ahead of the dividend record date today, September 16. At its AGM on September 1, the board recommended a 10% dividend, translating to Rs 0.10 per equity share for FY25. Sentiment has also been supported by optimism around a possible US-India trade deal, which may benefit pharmaceutical and nutraceutical players like Sigachi, as they remain outside the ambit of US tariffs.As recently as July, the company came under fire following a tragic dust explosion at its Hyderabad unit on June 30, which killed 46 employees and injured several others. Operations at the 6,400 MTPA facility remain suspended, with the company estimating a revenue loss of about Rs 60 crore during the closure period.
Sigachi Industries shares are down over 14% year-to-date.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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