CREDITACC - Swing Trade Analysis

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

Swing Trade Rating: 3.2

📊 Analysis Summary

CREDITACCESS GRAMEEN (CREDITACC) shows mixed signals for swing trading. While the stock is trading near its 50 DMA and has a bullish MACD, its extremely high valuation, weak profitability ratios, and sharp quarterly profit decline raise caution. It may offer a short-term bounce, but risk is elevated due to fundamental concerns and low volume.

🔍 Technical Indicators

RSI (45.7): Neutral — room to rise, but no strong momentum yet.

MACD (+21.4): Bullish — suggests potential upside.

Price vs DMA

Current Price (₹1,238) is slightly above 50 DMA (₹1,227) and well above 200 DMA (₹1,137) — mildly bullish.

Volume: Significantly below average — weak participation.

📈 Fundamental Snapshot

P/E (102) vs Industry PE (55.3): Extremely overvalued.

PEG Ratio (6.99): High — growth doesn’t justify valuation.

ROE (7.86%) & ROCE (9.55%): Weak — low efficiency.

EPS (₹12.2) vs Price (₹1,238): Poor earnings yield.

Qtr Profit Decline (-84.9%): Severe — major red flag.

FII Holding ↑ (+0.75%): Mild foreign interest.

DII Holding ↑ (+0.09%): Minimal domestic support.

Debt to Equity (2.94): Very high — leverage risk.

Dividend Yield (0.81%): Modest — not a swing factor.

✅ Entry Strategy (If Not Holding)

Optimal Entry Price: ₹1,210–₹1,225 range, near 50 DMA.

Entry only if volume improves and RSI crosses 50.

Watch for MACD continuation and price stability above 50 DMA.

🚪 Exit Strategy (If Already Holding)

Exit near ₹1,300–₹1,320, short-term resistance zone.

If price drops below ₹1,200, consider stop-loss at ₹1,180 to manage downside.

⚖️ Final Verdict

CREDITACC is a technically neutral, fundamentally weak stock with limited swing trade appeal unless momentum improves. Traders should approach with caution, using tight risk controls and watching for volume confirmation before entry. Suitable only for short-term tactical plays.

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