FORTIS - Swing Trade Analysis

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

Swing Trade Rating: 3.0

FORTIS has hit its 52-week high, and while fundamentals show steady performance, the technicals indicate the stock is nearing exhaustion — not ideal for fresh swing entries at the current level.

📊 Fundamental View

Valuation Check

P/E: 76.4 vs Industry PE: 69.2 → Slight overvaluation

PEG: 2.49 → Price growth may be outpacing earnings potential

EPS: ₹10.3, Book Value: ₹118 → Expensive compared to intrinsic value

Profitability

ROE: 10.1%, ROCE: 12.0% → Moderate returns

Debt-to-Equity: 0.28 → Financially stable

Dividend Yield: 0.12% → Not a compelling income-generating stock

Quarterly Performance

Flat PAT figures (₹226 Cr. vs ₹227 Cr.) → No growth momentum

Profit variation of 27.7% → One-off factors likely influencing earnings

📉 Technical Setup

Current Price: ₹851, near 52W High (₹854) → Resistance zone

RSI: 70.7 → Overbought territory, ripe for pullback

MACD: +21.3 → Momentum still bullish but flattening

DMA 50: ₹773, DMA 200: ₹678 → Long-term trend positive, but short-term looks extended

Volume Dip: Below weekly average → Weakening enthusiasm

🧭 Swing Trade Strategy

The stock is not ideal for entry now due to overbought technicals and possible exhaustion near its high.

Entry should be timed after a pullback and RSI cooling off toward 50.

✅ Optimal Entry Price

Buy Zone: ₹770–₹790 Look for dip toward 50-DMA and RSI below 55.

🚪 Exit Plan

Target Price: ₹850–₹865 Retest of 52W high range; aggressive traders may aim a bit higher.

Stop-Loss: ₹755 Below DMA 50 support.

Already holding? → Consider partial exit near ₹850–₹865 → Watch RSI — any move above 75 can signal imminent reversal. Lock gains before momentum fades.

If you'd like, I can surface alternative healthcare stocks with better technical entry setups. Want me to line those up?

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