HOMEFIRST - Swing Trade Analysis

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

Swing Trade Rating: 3.5

📊 Technical & Momentum Analysis

Current Price (₹1,197) is below both the 50-DMA (₹1,311) and slightly above the 200-DMA (₹1,166) — indicates short-term weakness but medium-term support.

RSI (33.6): Near oversold — potential for a technical bounce.

MACD (-17.6): Bearish — confirms downward momentum.

Volume: Slightly below average — suggests reduced trader interest.

📈 Fundamental Snapshot

ROCE (11.4%) & ROE (16.5%): Moderate — decent but not standout for swing setups.

EPS (₹44.3) vs Stock P/E (30.0): Fairly valued compared to Industry PE (20.2) — slightly expensive.

PEG Ratio (1.11): Reasonable — valuation aligns with growth.

Quarterly PAT Growth (35.5%): Solid earnings momentum.

FII Holding Increase (+1.19%) and DII Holding Increase (+2.07%): Strong institutional accumulation — bullish signal.

Debt to Equity (3.79): High — leverage risk, though typical for housing finance.

Dividend Yield (0.31%): Minimal — not a factor for swing trades.

⚖️ Swing Trade Viability

Strengths

RSI near reversal zone — potential bounce setup.

Strong institutional buying.

Decent earnings growth and PEG ratio.

Concerns

Weak technicals (MACD, below 50-DMA).

High debt levels.

Slightly expensive valuation vs industry.

🎯 Optimal Entry Price

Entry Zone: ₹1,160–₹1,190 — near 200-DMA and support zone. Look for RSI to cross 40 and MACD to flatten for confirmation.

🚪 Exit Strategy

If Holding: Consider exiting near ₹1,300–₹1,340 — around 50-DMA and short-term resistance.

Stop Loss: ₹1,120 — breach below this level would invalidate the swing setup.

HOMEFIRST is forming a potential rebound setup, but confirmation is key. If you're already holding, you're near support — just watch for momentum to turn. Want to explore other housing finance stocks with stronger technicals or lower debt? I’ve got a few worth scanning.

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