GRAVITA - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.2

📈 Analysis: GRAVITA presents a strong swing trade setup with bullish technicals and solid fundamentals. The current price of ₹1,769 is above both the 50 DMA (₹1,662) and 200 DMA (₹1,754), confirming an uptrend. RSI at 63.6 and MACD at 27.2 indicate strong momentum, though approaching overbought territory. The company boasts excellent ROCE (21.4%) and ROE (18.5%), low debt (0.11), and a healthy EPS of ₹35.6. The PEG ratio of 0.74 suggests reasonable valuation relative to growth. While FII holdings dipped slightly, DII interest rose, and quarterly PAT surged by 72.4%, reinforcing bullish sentiment.

🎯 Optimal Entry Price: ₹1,740–₹1,760 (on minor pullback near 50 DMA)

🚪 Exit Strategy (if holding): Consider exiting near ₹1,850–₹1,900 or if RSI crosses 70 with MACD flattening.

✅ Positive

• 📈 Price above 50 & 200 DMA — strong bullish trend
• 📊 ROCE (21.4%) and ROE (18.5%) — excellent capital efficiency
• 💸 Low debt-to-equity ratio (0.11) — sound financial health
• 📈 EPS of ₹35.6 — robust earnings base
• 📊 PAT growth from ₹68 Cr. to ₹87.2 Cr. — strong quarterly performance

⚠️ Limitation

• 📉 RSI nearing overbought zone — risk of short-term pullback
• 📉 Volume below weekly average — reduced trading interest
• 📉 FII holding decreased (-0.44%) — foreign investor caution
• 📉 Dividend yield of 0.36% — minimal income support

📰 Company Negative News

• No major public negative news, but reduced FII interest and low dividend yield are cautionary

🌟 Company Positive News

• Strong quarterly profit growth and rising DII interest reflect improving fundamentals and domestic confidence

🏭 Industry

• Industry P/E is 22.4 — GRAVITA trades at a premium, reflecting growth expectations
• Recycling and metals sector benefits from sustainability trends and industrial demand

🧾 Conclusion

GRAVITA is a technically and fundamentally strong swing trade candidate. Entry near support offers a tactical opportunity. Exit near resistance or on RSI/MACD reversal is advisable.

I can also help you track GRAVITA’s RSI and MACD trends over the next few sessions to fine-tune your timing.