CHENNPETRO - Swing Trade Analysis

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

Swing Trade Rating: 2.2

📊 Analysis Summary

CHENNPETRO is currently not a favorable candidate for swing trading, due to weak fundamentals, erratic earnings, and lack of strong technical momentum. While the MACD is positive, the broader setup lacks conviction for a reliable short-term trade.

🔍 Technical Indicators

RSI (46.4): Neutral — no clear signal.

MACD (11.7): Positive — suggests short-term momentum, but needs confirmation.

Price vs DMA

Current Price (₹705) is slightly above 50 DMA (₹699) and above 200 DMA (₹676) — mildly bullish.

Volume: Significantly below average — weak trader interest.

📈 Fundamental Snapshot

P/E: Not available due to negative earnings — red flag.

EPS (-₹12.3): Negative — indicates recent losses.

ROCE (4.30%) & ROE (2.51%): Very weak — poor capital efficiency.

Qtr Profit Var (-111%): Massive decline — from ₹470 Cr. profit to ₹40.1 Cr. loss.

Book Value (₹551) vs Price (₹705): Trading at a premium despite weak fundamentals.

FII Holding ↓ (-1.80%): Foreign investors exiting — bearish signal.

DII Holding ↑ (0.24%): Minimal domestic support.

Debt to Equity (0.38): Reasonable — not a concern.

✅ Entry Strategy (If Not Holding)

Avoid entry for now — fundamentals are too weak.

If price drops near ₹680 and shows reversal signs with volume spike, consider speculative entry with tight stop-loss.

🚪 Exit Strategy (If Already Holding)

Exit near ₹725–₹740, especially if MACD starts to weaken.

If price falls below ₹690, consider stop-loss at ₹675 to protect capital.

⚖️ Final Verdict

CHENNPETRO is not suitable for swing trading at this time due to poor earnings, weak ROE/ROCE, and lack of volume support. Any trade here would be speculative and high-risk.

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