CAMS - Swing Trade Analysis

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

Swing Trade Rating: 3.9

📊 Analysis Summary

CAMS is a fundamentally strong stock with excellent profitability and low debt, currently trading near a technical support zone. While momentum indicators are weak, the oversold RSI and proximity to key moving averages make it a reasonable candidate for a short-term swing trade, especially if reversal signals emerge.

🔍 Technical Indicators

RSI (35.0): Near oversold — suggests potential for a bounce.

MACD (-30.8): Bearish — momentum is weak but may be stabilizing.

Price vs DMA

Current Price (₹3,916) is below 50 DMA (₹4,099) and below 200 DMA (₹4,003) — bearish but near support.

Volume: Slightly below average — neutral sentiment.

📈 Fundamental Snapshot

P/E (43.9) vs Industry PE (51.3): Slightly undervalued.

PEG Ratio (2.58): Moderately high — growth is priced in.

ROE (43.4%) & ROCE (53.6%): Outstanding profitability and efficiency.

EPS (₹95.1) vs Price (₹3,916): Reasonable valuation.

Qtr Profit Growth (+9.53%): Steady earnings momentum.

FII Holding ↓ (-3.00%): Significant foreign selling — caution.

DII Holding ↑ (0.61%): Mild domestic support.

Debt to Equity (0.08): Very low — strong financial health.

Dividend Yield (1.58%): Decent — adds downside cushion.

✅ Entry Strategy (If Not Holding)

Optimal Entry Price: ₹3,850–₹3,900 range, near support.

Wait for RSI to cross 40 and MACD to flatten or turn positive.

Confirm with volume spike or bullish candlestick pattern.

🚪 Exit Strategy (If Already Holding)

Exit near ₹4,100–₹4,150, close to 50 DMA resistance.

If price breaks below ₹3,800, consider stop-loss at ₹3,750 to protect downside.

⚖️ Final Verdict

CAMS is a technically weak but fundamentally strong stock, suitable for a short-term swing trade if technical indicators begin to reverse. Ideal for traders seeking a recovery play with solid fundamentals and manageable risk.

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