ASIANPAINT - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

✅ Swing Trade Rating: 3.6

Entry Zone: ₹2,460–₹2,485 (only if MACD sustains and RSI > 56)

Exit if held: ₹2,525–₹2,540 (near short-term resistance and volume pivot zone)

📊 Technical & Fundamental Snapshot

• 📈 Current Price: ₹2,487
• 📉 52W High/Low: ₹2,935 / ₹2,125
• 📈 RSI: 54.3 (neutral to bullish)
• 📈 MACD: 24.2 (bullish crossover)
• 📉 Volume: 6.07L vs 1W Avg 6.59L (slightly below average)
• 📉 FII Holding Change: -0.21%
• 📈 DII Holding Change: +0.52%
• 📉 P/E: 63.4 vs Industry 42.6 (valuation premium)
• 📉 PEG Ratio: 8.96 — growth priced high

✅ Positive

• 📈 ROCE & ROE: 27.3% and 20.7% — strong capital efficiency.
• 📈 EPS: ₹36.5 — robust earnings base.
• 📈 MACD Bullish: Indicates momentum recovery.
• 📈 Above DMA 50 & 200: Trend confirmation zone.
• 📈 Debt to Equity: 0.06 — low leverage.

⚠️ Limitation

• 📉 Valuation Stretch: P/E and PEG indicate premium pricing.
• 📉 Volume Dip: Slightly below average — watch for breakout confirmation.
• 📉 Qtr Profit Var: -7.53% — sequential earnings decline.

🚨 Company Negative News

• 📉 Regulatory Investigation: Asian Paints under scrutiny for alleged unfair dealer practices.
• 📉 Muted FY26 Outlook: Management expects single-digit growth amid rising competition and margin pressure.

📈 Company Positive News

• 🚀 Q2FY26 PAT: ₹1,100 Cr vs ₹817 Cr QoQ — strong recovery despite muted guidance.
• 📈 Market Leadership: Maintains dominant position in ₹75,000 Cr paint industry.
• 📈 Premium Focus: Strategy shift toward high-margin segments and urban repainting demand.
• 📈 Recent Gains: Stock rose 1%–1.5% in recent sessions, leading Sensex gainers.

🎨 Industry

• 📈 Urban Demand: Premium housing and repainting cycles driving volume.
• 📉 Competitive Pressure: New entrants like Birla Opus intensifying pricing and dealer dynamics.

🧾 Conclusion

• ⚠️ Moderate swing setup with MACD/RSI alignment but valuation and regulatory overhang.
• 📥 Entry near ₹2,460–₹2,485 if RSI > 56 and MACD sustains.
• 📤 Exit near ₹2,525–₹2,540 (resistance and volume pivot zone).
• 📈 Fundamentals strong, sentiment cautious — suitable for alert-driven tactical trades with basket overlay.

Sources

IndiaTV – Market Opening

Economic Times – Live Updates

Business Today – Gainers

StockMarkets.co.in – Investigation

CNBC TV18 – FY26 Outlook