FSL - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.8

📈 Analysis: FSL presents a moderately favorable swing trade setup. The current price of ₹353 is slightly above both the 50 DMA and 200 DMA (₹345), indicating a potential breakout. RSI at 58.6 and MACD at 2.53 suggest building bullish momentum. However, the high P/E of 58.1 and extremely negative PEG ratio (-149) raise valuation concerns. The recent drop in quarterly PAT and reduced FII holding also temper enthusiasm. Still, strong ROCE (16.9%) and ROE (15.3%) support operational efficiency, and rising DII interest adds confidence.

🎯 Optimal Entry Price: ₹345–₹350 (near DMA support with confirmation)

🚪 Exit Strategy (if holding): Consider exiting near ₹385–₹400 (next resistance zone) or if RSI crosses 70 with declining volume.

✅ Positive

• 📈 Price trading above key DMAs — bullish technical setup
• 📊 Strong ROCE (16.9%) and ROE (15.3%) — efficient capital use
• 📉 Low debt (Debt/Equity: 0.32) — financial stability
• 📈 DII holding increased (+0.68%) — domestic institutional support

⚠️ Limitation

• 📉 High P/E (58.1) and extremely negative PEG — overvaluation risk
• 📉 Decline in quarterly PAT (₹135 Cr. to ₹98 Cr.)
• 📉 FII holding reduced (-0.33%) — foreign investor caution
• 📉 Volume below weekly average — limited momentum confirmation

📰 Company Negative News

• No major public negative news, but earnings decline and valuation metrics are cautionary

🌟 Company Positive News

• Strong operational efficiency and rising DII interest support short-term recovery potential

🏭 Industry

• Industry P/E is 37.4 — FSL trades at a premium, reflecting growth expectations
• IT services and digital transformation sector remains resilient with long-term demand tailwinds

🧾 Conclusion

FSL is a moderately attractive swing trade candidate with improving technicals and solid fundamentals. Entry near DMA support offers a favorable setup, while exit near resistance or on RSI/MACD confirmation is advisable.

I can also compare FSL’s setup with peers like Mphasis or Coforge to help you spot stronger swing trade opportunities.