GRAPHITE - Swing Trade Analysis

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

Swing Trade Rating: 3.5

GRAPHITE seems to be approaching a potential technical inflection zone. It's not primed for a breakout, but the combination of fundamental recovery and proximity to support levels offers a mildly bullish swing trade setup — especially if indicators strengthen.

🧠 Fundamental Snapshot

Valuation

P/E: 23.6 vs Industry PE: 41.2 → Undervalued compared to peers

PEG: -7.01 → Negative due to prior earnings contraction; interpret cautiously

Efficiency & Strength

ROCE: 10.1%, ROE: 7.93% → Moderately productive capital usage

Debt-to-Equity: 0.03 → Very low leverage, financially sound

Dividend Yield: 2.00% → Passive income bonus

📉 Technical Viewpoint

Price Position

Current Price: ₹550

50-DMA: ₹548, 200-DMA: ₹521 → Hovering around 50-DMA, above long-term support

Momentum & Indicators

RSI: 45.8 → Slightly bearish but recovering

MACD: 0.45 → Barely positive; early signs of uptick

Volume

Below weekly average → Suggests low conviction; needs pickup

Recent Performance

PAT reversal from negative to ₹49 Cr → Encouraging quarterly shift

EPS: ₹23.6 → Robust, given price levels

🎯 Swing Strategy Summary

While GRAPHITE isn’t screaming bullish, its fundamentals are stabilizing and technicals show early signs of life. A well-timed entry could capture a modest upward move.

✅ Optimal Entry Price

Buy Zone: ₹540–₹555 Enter if MACD continues rising and RSI pushes above 50

🚪 Exit Strategy

Target: ₹585–₹595 Aligns with recent resistance; take profit before major hurdles

Stop-Loss: ₹528 Below 200-DMA to protect against breakdowns

🧭 Already Holding?

→ Watch for ₹585 as profit zone → If price drops below ₹528 or volume weakens further, consider trimming or exiting → Re-entry is viable near ₹520–₹525 if momentum rebounds

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