AFCONS - Swing Trade Analysis

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

Swing Trade Analysis for Afcons Infrastructure Ltd. 🏗️ (AFCONS)

📊 Swing Trade Rating

Rating: 2.9

Afcons is currently in a technical slump, though fundamentals offer medium-term stability. The stock has corrected significantly and trades near support, but indicators suggest downside risk outweighs short-term reward. It's worth monitoring for a potential rebound rather than initiating a confident swing trade.

✅ Strengths Supporting Future Potential

ROCE (19.6%) & ROE (11.1%): Solid efficiency in capital deployment

Fair EPS (₹13.2) with P/E (29.8) slightly above industry average (23.8)

Decent Debt Profile: Debt-to-equity of 0.45 is manageable

DII Holding Increase (+2.46%): Rising domestic institutional interest

Volume Activity: Trading volume is above weekly average—indicates market engagement

⚠️ Technical & Sentiment Red Flags

Bearish Momentum: RSI (28.3) deep in oversold territory; MACD (-7.00) confirms downtrend

Trading Below Key Averages: CMP (₹397) below both 50-DMA (₹429) and 200-DMA (₹452)—negative technical bias

Quarterly Profit Dip: PAT down 23.4%—signals potential earnings pressure

PEG Ratio (2.78): Indicates premium pricing relative to growth

FII Exit (-2.41%): Foreign investors pulling out

52w Index (7.76%): Sharp decline from year high of ₹570—a sentiment drag

Near-term Support: Hovering close to yearly low of ₹382; breakdown risk if breached

🎯 Optimal Entry Price

Avoid premature entry. Look for signs of reversal before stepping in

Entry Zone: ₹390–₹400

Conditions to Enter

RSI climbs above 35 with stable MACD

Price closes above ₹429 (50-DMA) on strong volume

Earnings outlook stabilizes in the next quarter

💼 Exit Strategy (If Already Holding)

Initial Target: ₹430–₹440 (near 50-DMA)

Medium Resistance Zone: ₹455–₹460 (approaching 200-DMA)

Stretch Exit: ₹485–₹500 if uptrend resumes with improving RSI

Stop Loss: ₹380 to avoid deeper downside

🧠 Final Thought

AFCONS has the bones of a resilient infrastructure play but is technically weak at the moment. Don’t chase the dip—wait for a turnaround signal. It might take a macro trigger (project wins, budget momentum, sector rally) to revive the trend.

Want to explore how AFCONS stacks against KNR Construction, PNC Infra, or IRB in terms of technical rebound probability or profit stability? That’d be an intriguing side-by-side 📍🔎.

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