DOMS - Swing Trade Analysis

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

Swing Trade Rating: 3.8

📊 Analysis Summary

DOMS has excellent fundamentals and strong long-term growth potential, but its technical setup is currently weak, indicating a short-term downtrend. The stock is trading below key moving averages, and momentum indicators suggest caution. However, its low debt, high ROE/ROCE, and reasonable PEG ratio make it a watchlist candidate for a swing trade once technicals improve.

🔍 Technical Indicators

RSI (45.4): Neutral to bearish — below 50, indicating weak momentum.

MACD (-28.1): Bearish — confirms downward pressure.

Price vs DMA

Current Price (₹2,370) is below both 50 DMA (₹2,457) and 200 DMA (₹2,516) — short-term bearish.

Volume: Slightly above average — mild accumulation, but not convincing.

📈 Fundamental Snapshot

P/E (71.1) vs Industry PE (51.5): Overvalued — premium valuation.

PEG Ratio (0.50): Attractive — growth is reasonably priced.

ROE (22.3%) & ROCE (26.2%): Very strong — excellent capital efficiency.

EPS (₹33.3) vs Price (₹2,370): Valuation is rich but supported by growth.

Qtr Profit Growth (+7.24%): Mild — consistent but not explosive.

FII Holding ↓, DII Holding ↑: Mixed institutional sentiment.

Debt to Equity (0.21): Low — strong financial health.

Dividend Yield (0.11%): Minimal — not relevant for swing trading.

✅ Entry Strategy (If Not Holding)

Wait for RSI to cross 50 and MACD to turn positive.

Optimal Entry Price: ₹2,350–₹2,370 range, ideally after a bullish reversal candle near support.

Watch for price reclaiming 50 DMA (₹2,457) with volume confirmation.

🚪 Exit Strategy (If Already Holding)

Exit near ₹2,550–₹2,600, where resistance from 200 DMA and previous support lies.

If price drops below ₹2,300, consider stop-loss at ₹2,250 to protect capital.

⚖️ Final Verdict

DOMS is a fundamentally strong but technically weak stock in the short term. It’s not ideal for immediate swing trading, but could become attractive on a trend reversal. Keep it on your radar and wait for momentum to align.

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