ACC - Swing Trade Analysis

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

Swing Trade Analysis for ACC Ltd. 🧱

📊 Swing Trade Rating

Rating: 3.4

ACC is currently showing signs of weakness, but technical indicators suggest it’s nearing a potential rebound zone. The fundamentals are solid for a value-oriented play, though not overly attractive for aggressive swing trading in the immediate term.

✅ Strengths

Low Debt Profile: Debt-to-equity of 0.02 enhances financial stability.

Healthy ROCE & ROE: ROCE at 17.4% and ROE at 13.2%—respectable capital efficiency.

Reasonable Valuation: Stock P/E (14.7) is significantly below industry average (51.1), hinting at value potential.

EPS of ₹129: Strong earnings support upside possibility.

MACD (-14.2) and RSI (28.8): Indicates oversold territory—potential for a technical bounce.

❌ Weaknesses

Deteriorating Institutional Interest: Drop in both FII (-0.17%) and DII (-0.79%) holdings.

Falling Profit: PAT dropped sharply from ₹644 Cr. to ₹375 Cr.—signals possible operational pressures.

Weak Momentum: Volume is lower than average; RSI is below 30; MACD bearish.

Low 52W Index (6.23%): Trading near yearly lows—shows prolonged weakness.

High PEG Ratio (2.22): Suggests valuation isn’t entirely justified by growth.

📥 Optimal Entry Price

Look for stabilization and price action around ₹1,800 or slightly lower (~₹1,775–₹1,790). Ideal entry would be confirmed by RSI crossing above 30 and MACD flattening or reversing.

🚪 Exit Strategy (If Already Holding)

First Resistance: ₹1,920 (DMA 50); this could be a near-term test level.

Mid-Term Exit Zone: ₹2,000–₹2,050 (around DMA 200).

Aggressive Target: ₹2,250, if volumes spike and RSI reaches the 55–60 band.

Stop Loss: ₹1,740, below recent swing low, to manage downside risk.

🧠 Final Thought

ACC is approaching oversold territory and may reward patient swing traders on a technical rebound. It’s a classic value setup with medium volatility—but wait for clear reversal cues before entry. If you’re holding already, consider trimming around moving averages unless institutional sentiment turns.

Would you like to compare this with a peer like Ultratech or Shree Cements to spot sector trends? Let’s dig deeper if you’re game. 🧮📉

Edit in a page