ACE - Swing Trade Analysis

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

Swing Trade Analysis for Action Construction Equipment Ltd. 🚜 (ACE)

📊 Swing Trade Rating

Rating: 3.4

ACE shows solid fundamentals with excellent returns and nearly zero debt, but the current technical picture is weak. It’s more of a wait-for-a-bounce candidate rather than a jump-in-now play.

✅ Strengths Worth Noting

ROCE (40.3%) & ROE (28.8%): Outstanding capital and equity efficiency

Debt-to-Equity (0.01): Virtually debt-free, adds to balance sheet resilience

PEG Ratio (0.57): Indicates attractive valuation relative to earnings growth

EPS ₹34.4: Strong earning power

Quarterly Profit Growth (+20.4%): Solid operational improvement

⚠️ Weaknesses & Risks

RSI (36.2) & MACD (-26.1): Weak momentum, with bearish undertones

Trading Below 50 & 200 DMA: Downtrend still in control

Volume Below Average: Current volume (1.32L) is under 1-week average, showing low conviction

FII Outflow (-0.13%): Indicates foreign investor caution

52W Index (29.5%): Reflects underperformance relative to peak

📌 Optimal Entry Price

For swing traders, wait for ₹1,100–₹1,110 range with RSI improving toward 45 and MACD flattening. Enter only if price shows stability and volume confirms support.

🧳 Exit Plan (If Already Holding)

Resistance Target 1: ₹1,185–₹1,200 (DMA 50)

Next Resistance Zone: ₹1,230–₹1,250 (DMA 200)

Stretch Target: ₹1,300+ if reversal sustains

Stop Loss: ₹1,075 to manage risk below recent support zones

🧠 Final Thought

ACE has the fundamentals of a juggernaut but the chart of a jogger catching its breath. If you already hold it, keep an eye on ₹1,200 levels and consider trimming there. For a fresh swing, wait for momentum confirmation—a rush entry might be premature.

I can help chart its RSI + MACD crossover or compare it to infra peers like JCB India or Schwing Stetter if you’re considering alternatives. 📉🔍 Let’s keep the edge sharp.

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