HONASA - Swing Trade Analysis

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

Swing Trade Rating: 2.7

📉 Technical Breakdown

Current Price (₹265) is well below both the 50 DMA (₹287) and 200 DMA (₹296), suggesting continued short-term downtrend.

RSI (30.4): Hovering near oversold territory. May hint at a bounce, but not yet a confirmed reversal.

MACD (–8.77): Deeply bearish, reflecting strong selling pressure.

Volume: Significantly below average — minimal trader interest, which reduces chances of a momentum-driven swing.

📊 Fundamental Snapshot

Valuation Concerns

P/E (119) vs Industry PE (59.2): Highly overvalued relative to peers.

PEG Ratio (1.67): Signals overpriced stock relative to its earnings growth.

EPS (₹2.24) vs Price: Extremely low earnings for the price — weak support for valuation.

Returns: ROCE (8.04%) and ROE (6.39%) reflect weak capital efficiency.

Debt to Equity (0.12): Financially sound — not a red flag, but doesn’t compensate for valuation.

Dividend Yield: Nil — no buffer for holding during volatility.

🧾 Ownership & Profit Trends

FII Holding (+0.54%) & DII Holding (+0.41%): Mild institutional optimism, possibly speculative.

Profit Decline (–18%): Negative earnings momentum is a red flag for short-term traders.

🎯 Trade Strategy

📥 Entry Point: If price pulls back to ₹250–₹255 zone with RSI turning above 35 and MACD showing flattening, it may offer a cautious entry.

📤 Exit if Holding: Look to exit around ₹280–₹285. That’s near the 50 DMA resistance. If RSI reaches 50 and MACD stays negative, upside will likely fizzle there.

🧠 Final Takeaway

HONASA is not an ideal swing trade candidate at the moment. Oversold signals could tempt speculative trades, but without clear technical or earnings support, it’s more “watchlist material” than a move-ready opportunity.

Want to hunt for stronger setups in the startup or consumer goods space? I've got a few names that might spark your interest.

Edit in a page