IIFL - Swing Trade Analysis

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

Swing Trade Rating: 3.9

🧠 Snapshot

IIFL is showing strong price momentum with technical indicators tilting bullish, but some cracks in fundamentals and valuation warrant caution. If you're aiming for a short-to-mid-term swing, this setup has potential — especially for traders who can move quickly.

📈 Technical Analysis

Current Price (₹515) is well above 50 DMA (₹478) and 200 DMA (₹429) → strong uptrend.

RSI (55.8): Healthy bullish zone, with room to rise before overbought.

MACD (12.8): Strong positive momentum.

Volume: Above average — suggests active participation.

These signals suggest short-term strength with possible continuation toward upper resistance levels.

📊 Fundamentals Check

Valuation

P/E (38.7) is significantly above Industry PE (25.2) → overvalued.

PEG (–1.76) is skewed due to erratic growth trends.

Profitability

ROE (4.9%) and ROCE (8.81%): modest performance.

PAT Crash (–44.4%) despite high quarterly profit → indicates income fluctuation or one-off boost.

Debt to Equity (4.15): Elevated leverage — typical for NBFCs but adds risk.

EPS (₹8.92): Reasonable earnings per share, supports short-term valuation.

🔁 Sentiment Signals

FII Holding ↓ (–1.41%): Caution from foreign investors.

DII Holding ↑ (+2.55%): Strong domestic institutional support.

Institutional activity is mixed but slightly tilted toward optimism.

🎯 Trade Setup

📥 Optimal Entry: Look for pullback to ₹505–₹510. Confirm entry if RSI holds above 50 and MACD remains strong.

📤 Exit if Holding: Watch for price action near ₹545–₹555. Use RSI nearing 65+ and MACD slowing down as exit cues.

📝 Final Thought

IIFL offers a compelling technical play with volume and momentum in its favor, despite shaky fundamentals. Traders with short-term focus and disciplined risk control could capitalize on a quick 6–8% swing.

Want to explore similar setups in the NBFC space or scan for stealth breakouts? Just say the word — I’ll line them up. 📊💡

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