AMBER - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:00 am

Swing Trade Rating: 2.4

📊 AMBER shows weak potential for swing trading at present. The RSI at 37.2 suggests the stock is nearing oversold territory, but the MACD (-237) indicates strong bearish momentum. The price is below both the 50 DMA (7,237 ₹) and 200 DMA (7,083 ₹), confirming a downtrend. Optimal entry would be near 6,400–6,500 ₹, closer to support levels. If already holding, consider exiting near 7,000–7,100 ₹, where resistance from the 200 DMA exists.

✅ Positive

• 📈 Strong institutional support with FII (+2.02%) and DII (+2.38%) holdings increasing.
• 💹 52-week gain of 42.6% highlights long-term investor interest.
• 📊 Book value of 830 ₹ provides some asset backing.

⚠️ Limitation

• 📉 Extremely high P/E (193) compared to industry average (49.3), indicating stretched valuation.
• 📉 ROCE (11.6%) and ROE (7.63%) show weak efficiency.
• 📉 Debt-to-equity ratio of 0.69 adds financial risk.
• 📉 Price below DMA 50 & DMA 200, confirming bearish trend.

🚨 Company Negative News

Quarterly results show a sharp decline, with PAT turning negative (-48.7 Cr. vs +68.1 Cr. previous quarter). Profit variation (-263%) highlights earnings instability. Technical indicators remain weak with strong bearish momentum.

🌟 Company Positive News

Institutional investors (FII & DII) have increased holdings, showing confidence despite weak fundamentals. Long-term performance remains positive with a 42.6% gain over the past year.

🏭 Industry

The consumer durables industry trades at an average P/E of 49.3, while AMBER trades at 193, making it significantly overvalued compared to peers. Sector demand remains steady, but valuation concerns limit near-term attractiveness.

📌 Conclusion

AMBER is a weak candidate for swing trading due to stretched valuations, declining profits, and bearish technicals. Entry near 6,400–6,500 ₹ may offer limited rebound potential. Exit strategy should target 7,000–7,100 ₹, but traders should remain cautious given earnings instability and weak momentum.

I can also outline a stop-loss level around 6,200 ₹ to help manage downside risk more effectively if you'd like.