HONAUT - Swing Trade Analysis

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

Swing Trade Rating: 3.2

📊 Technical & Momentum Analysis

Current Price (₹38,725) is slightly below both the 50-DMA (₹38,940) and 200-DMA (₹39,538) — signals short-term weakness.

RSI (41.9): Near oversold zone — potential for a bounce, but not yet confirmed.

MACD (-144): Strongly negative — bearish momentum still in play.

Volume: Extremely low — illiquidity makes swing trading riskier and harder to execute efficiently.

📈 Fundamental Snapshot

ROCE (18.4%) & ROE (13.7%): Decent — but not compelling for short-term trades.

EPS (₹579) vs Stock P/E (66.9): Overvalued relative to Industry PE (39.1) — valuation is stretched.

PEG Ratio (4.29): Very high — poor valuation relative to growth.

Quarterly PAT Decline (-8.72%): Earnings contraction — not ideal for momentum-based trades.

FII Holding Increase (+0.16%): Minimal — not a strong signal.

DII Holding Decline (-0.20%): Slight caution from domestic institutions.

Debt to Equity (0.02): Excellent — virtually debt-free.

Dividend Yield (0.27%): Low — not a factor for swing setups.

⚖️ Swing Trade Viability

Strengths

Near support zone — potential technical bounce.

Strong balance sheet with minimal debt.

High-quality brand with long-term credibility.

Concerns

Weak technical indicators (MACD, RSI below 50).

Low volume — poor liquidity for swing trades.

Overvaluation and declining earnings.

Near-term trend is bearish.

🎯 Optimal Entry Price

Entry Zone: ₹37,500–₹38,000 — near recent support and psychological level. Wait for RSI to cross 45 and MACD to flatten before entering.

🚪 Exit Strategy

If Holding: Consider exiting near ₹40,500–₹41,000 — around 200-DMA and resistance zone.

Stop Loss: ₹36,800 — breach below this level would invalidate the swing setup.

HONAUT is fundamentally strong but technically weak for a swing trade right now. If you're already holding, you're close to support — just monitor momentum indicators closely. If you’re open to exploring industrial automation peers with better setups, I can help you scan for stronger candidates.

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