DIVISLAB - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.2

📈 Current Price: ₹6,826

📊 RSI: 71.8 (Overbought zone)

📈 MACD: 158 (Strong bullish momentum)

📈 DMA 50 / 200: ₹6,354 / ₹6,120 (Price well above both averages)

📈 Volume: 8,08,960 vs 1Wk Avg 5,42,459 (Strong buying interest)

💰 Market Cap: ₹1,81,178 Cr

📉 Qtr Profit Decline: ₹667 Cr → ₹557 Cr

📉 FII Holding: -0.35%

📈 DII Holding: +0.72%

📌 Optimal Entry Price

🎯 Entry Range: ₹6,600–₹6,700 (On pullback from overbought zone)

📤 Exit Strategy

💡 Exit if: Price approaches ₹7,050–₹7,080 or RSI remains above 70 with weakening volume.

✅ Positive

• Price trading well above 50 DMA and 200 DMA
• MACD shows strong bullish momentum
• High ROCE (20.6%) and ROE (15.6%) indicate efficient capital use
• EPS of ₹88.0 and zero debt (Debt/Equity: 0.00)
• DII holding increased, reflecting domestic institutional confidence
• Strong volume surge supports price action

⚠️ Limitation

• RSI in overbought territory, suggesting limited short-term upside
• High P/E (77.6) vs industry average (33.1)
• Negative PEG ratio (-8.43) indicates valuation concerns
• FII holding declined slightly

📰 Company Negative News

• Quarterly PAT declined from ₹667 Cr to ₹557 Cr
• FII holding reduced by 0.35%

📈 Company Positive News

• DII holding increased by 0.72%
• Stock nearing 52-week high with strong momentum

🏭 Industry

• Industry P/E: 33.1 (significantly lower than DIVISLAB’s P/E)
• Pharmaceutical sector benefits from global demand, but faces pricing and regulatory pressures

🔚 Conclusion

DIVISLAB presents a strong swing trade setup with bullish technicals and solid fundamentals. However, overbought RSI and high valuation warrant caution. Entry on a pullback near ₹6,600–₹6,700 is ideal, with an exit target around ₹7,050–₹7,080. A stop-loss below ₹6,500 is recommended to manage downside risk.

I can also monitor RSI and MACD for DIVISLAB to help you catch the next breakout or reversal.