CARBORUNIV - Swing Trade Analysis

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

Swing Trade Rating: 2.7

📊 Analysis Summary

CARBORUNIV shows signs of weakness both technically and fundamentally for a short-term swing trade. Here's a breakdown

🔍 Technical Indicators

RSI (34.4): Oversold territory, but not yet showing reversal strength.

MACD (-6.00): Bearish momentum, indicating continued downward pressure.

Price vs DMA

Current Price (₹928) is below both 50 DMA (₹978) and 200 DMA (₹1,098), signaling a bearish trend.

Volume: Current volume is lower than average, suggesting weak buying interest.

📉 Fundamental Snapshot

P/E (49.0): Expensive, especially with a PEG ratio of 19.8, indicating poor growth relative to valuation.

ROCE (16.1%) & ROE (10.8%): Decent but not exceptional.

Qtr Profit Decline (-78.4%): Major red flag — sharp drop in profitability.

EPS (₹15.4) vs Price (₹928): Implies a high valuation.

FII Holding ↓: Foreign investors are reducing exposure.

Debt to Equity (0.06): Very low, which is a positive.

✅ Entry Strategy (If Not Holding)

Wait for RSI to rise above 40 and MACD to show convergence.

Optimal Entry Price: Around ₹880–₹900, near support zone, but only if reversal signs emerge (e.g., bullish candlestick patterns or volume spike).

🚪 Exit Strategy (If Already Holding)

Exit on bounce near 50 DMA (₹978) or if RSI crosses 50 with no volume confirmation.

If price fails to hold ₹900, consider tight stop-loss at ₹875 to avoid deeper downside.

⚠️ Final Verdict

This stock is not ideal for swing trading right now due to weak momentum, poor quarterly results, and high valuation. It may be better suited for long-term investors once fundamentals stabilize.

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