APLLTD - Swing Trade Analysis

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

Swing Trade Rating: 3.8

APLLTD (Alembic Pharmaceuticals) is showing signs of stabilization and strength around its short-term moving averages, suggesting potential for a modest swing trade. While fundamental metrics remain solid, the high PEG ratio and recent profit contraction call for a measured approach.

✅ Positives for Swing Trade

MACD Rising (+8.46): Bullish crossover implies upward momentum.

Price Above 50-DMA & 200-DMA: At ₹1,013, it's trading above both ₹985 (DMA50) and ₹966 (DMA200), indicating trend alignment.

RSI Neutral (53.7): Neither overbought nor oversold, with room to move higher.

Volume Uptick: Slightly above average, showing increasing interest.

❌ Risks & Limitations

High PEG Ratio (11.3): Suggests expensive valuation relative to growth.

Quarterly Profit Drop (-12.1%): Could trigger caution among traders.

ROE & ROCE Below Ideal: Moderate capital efficiency (ROE 11.4%, ROCE 13.0%).

Resistance Ahead: The stock is still ~22% below its 52-week high (₹1,304), facing overhead supply.

📥 Entry Recommendation

Ideal entry zone: ₹995–₹1,015

Confirm entry only if

RSI crosses above 55

MACD continues to rise or flattens with strong volume > 1.25L

Price remains above both DMA levels for 2 sessions

🚪 Exit Strategy (If Holding)

Initial Target: ₹1,065–₹1,075 (recent swing highs)

Mid-Term Target: ₹1,095–₹1,120 (volume breakout confirmation)

Stretch Exit: ₹1,160–₹1,180 (only if RSI enters overbought with continued buying pressure)

Stop Loss: ₹980 (to protect below DMA50 & psychological support)

🧠 Final Thought

This setup is more about gentle accumulation than aggressive trading. APLLTD has favorable technicals but lacks explosive momentum due to recent earnings slowdown and steep valuation. Use tight discipline and focus on breakout confirmation.

Want help tracking live RSI or MACD changes for this one or comparing it to other pharma swing candidates? I’ve got you.

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