AAVAS - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Analysis for Aavas Financiers Ltd. 🏡

📊 Swing Trade Rating

Rating: 2.9

The technical indicators and chart structure suggest weak momentum with no current bullish triggers. The fundamental strength—especially earnings and institutional interest—is notable, but leverage and negative signals from RSI and MACD caution against an aggressive swing entry at the moment.

🔎 Key Positives

EPS ₹62 & PEG 1.47: Decent earnings growth, with PEG showing positive valuation dynamics

Qtr Profit Growth (+12.3%): Stable operational performance

ROE (13.9%): Indicates moderately efficient use of equity

DII & FII Increase: Institutional accumulation is usually a good sign for medium-term upside

Above Average Volume: 1.55L vs weekly 82K shows increased interest recently

⚠️ Red Flags

RSI (34.0) & MACD (-22.9): Bearish momentum; RSI near oversold territory but no reversal yet

Trading Below 50- & 200-DMA: Downtrend is in place

Debt-to-Equity (3.29): Leverage is high—limits financial flexibility

No Dividend: Makes it unattractive for income-oriented holders

P/E (28.4) > Industry PE (20.0): Price may be stretched given sector multiples

💡 Optimal Entry Price

Wait for ₹1,730–₹1,740 zone with signs of MACD reversal and RSI rebounding toward 45+. Entry here is speculative unless supported by volume surge and trend confirmation.

🧳 Exit Strategy (If Holding)

Resistance Zone: ₹1,880–₹1,900 (near 50-DMA)

Aggressive Target: ₹1,950–₹2,000 if positive sentiment builds

Stop Loss: ₹1,710 to protect downside if trend worsens

🧠 Final Thought

AAVAS is fundamentally stable but technically weak for a swing trade right now. If you're already holding, keep a close watch on ₹1,900 resistance levels and consider exiting partially if recovery stalls. For fresh entry, patience is key—don’t dive in without signal confirmation.

Curious how it stacks up against other NBFCs like Home First or Aptus Value Housing? I can help compare momentum setups or valuation trends. 📈🔍

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