CERA - Swing Trade Analysis

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

Swing Trade Rating: 3.8

📊 Analysis Summary

CERA is a fundamentally strong company with improving earnings and low debt, but currently under technical pressure. It presents a moderate swing trade opportunity if reversal signals emerge, especially given its strong institutional support and earnings momentum.

🔍 Technical Indicators

RSI (40.1): Near oversold zone — watch for bounce confirmation.

MACD (-20.9): Bearish momentum, but may be bottoming.

Price vs DMA

Current Price (₹6,482) is below both 50 DMA (₹6,627) and 200 DMA (₹6,724), indicating short-term weakness.

Volume: Below average — low trader activity.

📈 Fundamental Snapshot

P/E (34.3) vs Industry PE (34.3): Fairly valued.

PEG Ratio (2.04): Slightly high — growth is priced in.

ROCE (22.4%) & ROE (18.2%): Strong operational efficiency and profitability.

EPS (₹190) vs Price (₹6,482): Reasonable valuation.

Qtr Profit Growth (+15.8%): Positive earnings momentum.

DII Holding ↑ (5.13%): Strong domestic institutional support.

FII Holding ↓ (-3.40%): Foreign investors trimming exposure.

Debt to Equity (0.05): Very low — excellent financial health.

✅ Entry Strategy (If Not Holding)

Optimal Entry Price: ₹6,300–₹6,400 range, near recent support.

Wait for RSI to cross 45 and MACD to flatten or turn positive.

Look for volume increase or bullish candlestick pattern before entering.

🚪 Exit Strategy (If Already Holding)

Exit near 50 DMA (₹6,627) or partial booking at ₹6,800.

If price breaks below ₹6,300, consider stop-loss at ₹6,200 to protect downside.

⚖️ Final Verdict

CERA is a decent swing trade candidate with strong fundamentals and signs of potential reversal. A short-term bounce is likely if technical indicators improve.

Would you like a comparison with other home improvement or ceramic sector stocks for better swing setups?

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