ATUL - Swing Trade Analysis

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

📊 Swing Trade Analysis for ATUL Ltd.

Swing Trade Rating: 3.7

Here's a breakdown of the technicals and fundamentals to assess its swing trade potential

📉 Technical Indicators

RSI (35.4): Significantly oversold territory — suggests a possible rebound.

MACD (-158): Bearish momentum, but could signal reversal if it converges.

Price vs. DMA

Current Price ₹6,719 is below DMA 50 ₹7,033 and DMA 200 ₹6,800, indicating a short-term downtrend.

Volume: Current volume (22,632) is lower than 1-week average (32,479), showing weak market participation.

🔍 Inference: Technical indicators point to caution, but there might be an opportunity if momentum picks up near support zones.

💼 Fundamentals

Market Cap: ₹19,738 Cr. — strong mid-cap presence.

EPS ₹170 vs. Stock P/E 39.5 — overvalued compared to Industry P/E 34.4.

PEG Ratio (-6.50): Negative value implies very low or negative expected earnings growth.

Dividend Yield (0.37%): Not attractive for income-focused investors.

ROE & ROCE (9.10%, 12.8%): Fair profitability; decent capital efficiency.

Debt-to-Equity (0.04): Extremely low leverage — positive.

Profit Growth: Quarterly PAT improved from ₹126 Cr to ₹128 Cr (up 14.2%) — modest but steady.

🟢 Optimal Entry Price

If you're considering a swing trade, an ideal entry would be near ₹6,600–₹6,650, close to recent support and below key moving averages, with tight stop-loss around ₹6,500.

🔴 Exit Strategy (If Already Holding)

Target Exit Price: ₹7,100–₹7,200, aligning with the 50-day moving average and expected resistance zone.

Stop-Loss: ₹6,500 — to limit downside risk.

💡 Final Thought

ATUL isn’t flashing strong buy signals right now for swing trading, but it has the potential to bounce from oversold levels. A conservative play with tight risk controls could be worthwhile if momentum shifts.

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