CASTROLIND - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.1

📉 Current Price: ₹194

📊 RSI: 35.7 (Approaching oversold zone)

📉 MACD: -1.65 (Bearish but flattening)

📈 DMA 50 / 200: ₹201 / ₹207 (Price below both averages)

📈 Volume: 29,61,827 vs 1Wk Avg 16,72,033 (High interest)

💰 Market Cap: ₹19,165 Cr

📈 Qtr Profit Growth: +9.82%

📉 FII Holding: -0.04%

📈 DII Holding: +0.03%

📌 Optimal Entry Price

🎯 Entry Range: ₹185–₹190 (Near support, RSI nearing oversold, strong volume)

📤 Exit Strategy

💡 Exit if: Price approaches ₹210–₹215 (resistance near 200 DMA) or RSI > 65 with weakening momentum.

✅ Positive

• Strong ROCE (55.2%) and ROE (41.8%) indicate efficient capital use
• High dividend yield of 4.39%
• Quarterly PAT growth of 9.82%
• Low debt (Debt/Equity: 0.04)
• High trading volume suggests accumulation interest

⚠️ Limitation

• Price trading below both 50 DMA and 200 DMA
• RSI and MACD still in bearish territory
• Stock P/E (19.6) slightly above industry P/E (17.1)
• Book Value (₹18.4) far below current price (₹194)

📰 Company Negative News

• Minor decline in FII holding (-0.04%)
• MACD still negative, indicating weak short-term momentum

📈 Company Positive News

• Quarterly PAT increased from ₹228 Cr to ₹244 Cr
• DII holding slightly increased (+0.03%)
• Strong earnings per share (EPS: ₹9.87)

🏭 Industry

• Industry P/E: 17.1 (slightly lower than stock P/E)
• Lubricants and automotive fluids sector is stable with moderate growth potential

🔚 Conclusion

CASTROLIND appears to be a solid swing trade candidate with strong fundamentals, high dividend yield, and improving quarterly profits. Despite short-term bearish indicators, the high volume and RSI nearing oversold suggest a potential bounce. Entry near ₹185–₹190 is favorable, with an exit target around ₹210–₹215. A tight stop-loss below ₹180 is advisable to manage risk.

I can also monitor volume and RSI shifts to help you time your entry more precisely.