CASTROLIND - Swing Trade Analysis

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

Swing Trade Rating: 3.7

📈 Technical & Momentum Analysis

Current Price (₹218) is exactly at the 50-DMA and slightly above the 200-DMA (₹212), indicating a neutral-to-bullish setup.

RSI (47.4): Mid-range — not overbought or oversold, suggesting indecision but room for upward movement.

MACD (0.70): Slightly positive — momentum is building, though not strongly.

Volume: Above average — healthy participation, which supports price action.

📊 Fundamental Overview

ROCE (55.2%) & ROE (41.8%): Outstanding profitability — top-tier efficiency.

Debt to Equity (0.04): Extremely low — strong financial stability.

Dividend Yield (3.89%): Attractive for income-seeking investors.

EPS (₹9.55) vs Stock P/E (22.9): Slightly overvalued compared to Industry PE (18.3).

PEG Ratio (3.45): High — suggests overvaluation relative to growth.

Quarterly PAT Decline: From ₹271 Cr. to ₹233 Cr. — mild drop, not alarming.

⚖️ Swing Trade Considerations

Pros

Excellent fundamentals and strong dividend yield.

Trading near key moving averages — potential breakout zone.

Volume supports price stability.

Cons

PEG ratio and P/E suggest limited upside from a valuation perspective.

RSI and MACD are neutral — no strong momentum yet.

FII holding slightly down (-0.33%) — minor sentiment dip.

🎯 Optimal Entry Price

Ideal Entry Zone: ₹210–₹215 — near 200-DMA and recent support. Look for RSI crossing 50 and MACD strengthening for confirmation.

🚪 Exit Strategy

If Holding: Consider exiting near ₹240–₹250 — short-term resistance zone and a reasonable swing target.

Stop Loss: ₹205 — below 200-DMA to manage downside risk.

CASTROLIND is a fundamentally strong stock with a stable technical base, making it a decent swing candidate if momentum improves. Want help identifying similar setups with stronger breakout potential?

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