GODIGIT - Swing Trade Analysis

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

Swing Trade Rating: 3.8

📊 Technical & Momentum Analysis

Current Price (₹365) is above both the 50-DMA (₹344) and 200-DMA (₹327) — bullish structure.

RSI (59.8): Approaching overbought zone — momentum is strong but nearing resistance.

MACD (6.01): Positive — confirms upward momentum.

Volume: Significantly below weekly average — suggests waning trader interest, which could limit short-term upside.

📈 Fundamental Snapshot

ROCE (10.8%) & ROE (11.9%): Moderate — not particularly strong for swing trading.

EPS (₹5.01) vs Stock P/E (73.0): Highly overvalued relative to Industry PE (39.0).

PEG Ratio (1.44): Acceptable, but not ideal — valuation slightly stretched relative to growth.

Quarterly PAT Growth (36.5%): Decent earnings momentum.

FII Holding Increase (+0.42%): Mild institutional interest.

DII Holding Decline (-0.88%): Slight caution from domestic institutions.

Dividend Yield (0.00%): No passive income — purely a capital appreciation play.

⚖️ Swing Trade Viability

Strengths

Price above key moving averages — trend is intact.

MACD and RSI support bullish momentum.

Recent earnings growth and FII accumulation.

Concerns

High valuation (P/E) and low ROCE/ROE — not ideal for short-term trades.

Weak volume — low conviction from market participants.

No dividend — limits downside cushion.

🎯 Optimal Entry Price

Entry Zone: ₹340–₹355 — near 50-DMA support. Look for RSI to stay below 65 and volume to pick up for confirmation.

🚪 Exit Strategy

If Holding: Consider exiting near ₹390–₹400 — close to recent highs and psychological resistance.

Stop Loss: ₹330 — breach below 200-DMA would invalidate the swing setup.

GODIGIT shows promise for a short-term swing if momentum sustains, but it's not a high-conviction setup due to valuation and volume concerns. If you're looking for insurance sector plays with stronger technicals or better institutional support, I can help you scout a few.

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