DMART - Swing Trade Analysis

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

📊 Swing Trade Analysis for DMART Ltd.

Swing Trade Rating: 3.5

🧭 Technical Snapshot

Current Price ₹3,999 is below both DMA 50 (₹4,113) and DMA 200 (₹4,085) — signaling a bearish short-term trend.

RSI (39.7): Near oversold territory, hints at possible bounce but lacks confirmation.

MACD (-56.4): Bearish momentum — price weakness continues.

Volume (2.89 lakh) is lower than weekly average (4.37 lakh), indicating waning interest.

📉 Inference: Technically, not ideal for a swing trade setup just yet. Would need either a reversal sign or trend support.

📚 Fundamental Insights

P/E Ratio (96.1) vs. Industry P/E (63.7) — overvalued, pricing in heavy growth.

PEG Ratio (4.41): High — suggests poor value relative to growth prospects.

EPS ₹41.6 & Book Value ₹329 — modest earnings; premium pricing.

ROE (13.4%) & ROCE (18.0%): Decent, but not exceptional for valuation commanded.

Debt-to-Equity (0.04): Very low — strong financial health.

PAT Qtr ₹773 Cr vs. Prev ₹551 Cr — Qtr Profit Var -0.11% feels inconsistent due to marginal net variation.

FII/DII Holding: Very slight uptick — neutral sentiment.

🧠 Verdict: Great long-term compounder, but short-term looks shaky for swing.

✅ Optimal Entry Price

Wait for a retracement to ₹3,850–₹3,880, near support zones.

Stop-Loss: ₹3,800 — to protect against continued weakness.

Avoid entry unless supported by volume surge or MACD crossover.

🚪 Exit Strategy (If Already Holding)

Conservative Exit: ₹4,100–₹4,150 — near 50-DMA resistance.

Aggressive Exit: ₹4,250–₹4,300 — if broader sentiment and volume rebound.

💡 Final Thought

DMART is a titan in its space but doesn't currently shine for swing trading due to technical weakness and stretched valuation. If you’re already holding, you might want to watch for momentum shifts or scale out near resistance levels.

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