BDL - Swing Trade Analysis

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

Swing Trade Rating: 3.1

📉 Technical & Momentum Analysis

Current Price (₹1,565) is below the 50-DMA (₹1,757) but above the 200-DMA (₹1,492), suggesting medium-term support but short-term weakness.

RSI (24.6): Deeply oversold — potential for a technical bounce.

MACD (-74.4): Strongly negative — confirms bearish momentum.

Volume: Slightly below average, indicating reduced participation.

📊 Fundamental Snapshot

ROCE (19.6%) & ROE (14.4%): Healthy profitability.

Debt to Equity (0.00): Zero debt — excellent financial stability.

EPS (₹15.0) vs Stock P/E (104): Highly overvalued relative to earnings.

PEG Ratio (63.2): Extremely high — suggests poor value relative to growth.

Quarterly PAT Decline (-5.54%): Indicates recent earnings pressure despite strong previous growth.

⚖️ Swing Trade Considerations

Pros

Oversold RSI could trigger a short-term bounce.

Strong fundamentals and zero debt.

Institutional interest rising (FII +0.52%, DII +0.65%).

Cons

Weak technical indicators and momentum.

Overvaluation (P/E and PEG) limits upside.

Price far below 52-week high (₹2,097), with only 56% of that range retained.

🎯 Optimal Entry Price

Ideal Entry Zone: ₹1,500–₹1,520 — near 200-DMA and potential support. Wait for RSI to rise above 30 and MACD to flatten for confirmation.

🚪 Exit Strategy

If Holding: Consider exiting near ₹1,750–₹1,780 — around 50-DMA and likely resistance.

Stop Loss: ₹1,470 — breach of 200-DMA would invalidate rebound setup.

This setup favors a cautious swing trade with tight risk control. If you're looking for more aggressive momentum plays, I can help you scan defense sector stocks with stronger technicals.

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