CROMPTON - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 2.9

📉 Technical & Momentum Overview

⚠️ Weak Signals

MACD (–3.66): Bearish divergence—momentum is fading.

RSI (41.8): Bearish-neutral zone, indicating lack of strength.

Price Action: Trading below both 50 DMA (₹327) and 200 DMA (₹346), confirming a short-term downtrend.

Volume Drop: Current volume is ~21% below 1-week average—low participation.

52W Index (10.6%): Severe underperformance—trading near yearly low.

📈 Fundamental Snapshot

✅ Positives

ROCE (20.1%) & ROE (16.5%): Solid capital efficiency.

Debt-to-Equity (0.13): Low leverage—adds margin of safety.

DII Inflow (+1.88%): Domestic institutional support.

Industry PE (56.6) vs Stock PE (38.5): Valuation is relatively attractive.

🚨 Red Flags

PAT Qtr (₹125 Cr) vs Prev Qtr (₹171 Cr): Earnings contraction (–20.6%).

FII Outflow (–1.13%): Foreign investors exiting.

PEG (–22.2): Negative PEG suggests unreliable growth valuation.

EPS (₹8.24): Low earnings base relative to price.

🎯 Optimal Entry Price

Wait for Reversal Confirmation: Entry only above ₹330–₹335 with MACD flattening and RSI > 45

Aggressive Entry: ₹312–₹317 if volume spikes and RSI crosses 44

🚪 Exit Strategy (If Already Holding)

Target Exit: ₹345–₹355 (near 200 DMA and resistance zone)

Stop Loss: ₹298 (below recent support and VWAP)

Exit Trigger: RSI dips below 40 or MACD diverges further

Selva, CROMPTON is fundamentally stable but technically weak at the moment. If you're considering a tactical swing, wait for confirmation signals. Want help scripting MACD reversal alerts or building a consumer electricals basket with better PEG and volume trends?

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