FIVESTAR - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 2.8

📉 Technical & Momentum Analysis

Downtrend Confirmed: Price is below both 50 DMA (₹599) and 200 DMA (₹678), indicating sustained weakness.

Oversold Signal: RSI at 36.2 suggests the stock is nearing oversold territory, but not yet reversing.

MACD Deep Negative: −19.3 confirms strong bearish momentum—no sign of crossover.

Volume Drop: Current volume (7.25L) is well below 1-week average (10.89L), showing fading interest.

📈 Fundamental Snapshot

Valuation Attractive: P/E of 14.6 vs industry average of 24.0 and PEG of 0.44 indicate undervaluation with growth potential.

Strong Returns: ROCE 16.3%, ROE 18.6%—solid capital efficiency.

Profit Stability: PAT dipped slightly from ₹279 Cr to ₹266 Cr (−4.6%), but Qtr Profit Var is +5.86%—still stable.

High Leverage: Debt-to-equity of 1.26 is elevated, typical for NBFCs but adds risk.

Institutional Sentiment: FII reduced (−0.62%), DII increased (+0.39%)—mixed signals.

🎯 Trade Strategy

🔹 Optimal Entry Price

₹525–₹535: Near recent low and support zone. Entry only if RSI crosses 40 and MACD flattens or turns positive.

🔹 Exit Strategy (If Already Holding)

₹590–₹600: First resistance zone near 50 DMA. Consider partial exit if RSI crosses 60 or MACD shows divergence.

₹675–₹700: Final exit zone if momentum recovers toward 200 DMA.

Trailing Stop: ₹518 to protect downside.

🧠 Summary

FIVESTAR is in a technical downtrend with strong fundamentals but weak momentum. It’s suitable for oversold bounce trades, not aggressive swing setups. Entry near support with confirmation is key. For cleaner momentum setups, consider stocks with MACD crossover, PEG < 1.5, and ROCE > 15%.

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