INDIACEM - Swing Trade Analysis

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

Swing Trade Rating: 3.8

📉 Technical Snapshot

Price Momentum: Stock is trading at ₹366 — very close to its 52-week high (₹382) and well above both DMA 50 (₹339) and DMA 200 (₹320). Momentum is strong.

RSI (62.0): Approaching overbought — signals caution if entering now.

MACD (7.25): Strongly positive — confirms bullish short-term trend.

Volume: Below weekly average — subdued buying interest may temper breakout strength.

📊 Fundamental View

Profitability

Negative ROCE (–5.49%) and ROE (–8.83%) → signals operational inefficiency.

PAT remains in red despite improvement (–₹10.8 Cr vs –₹53.2 Cr) → turnaround story, not yet stable.

EPS of –₹10.8 rules out meaningful valuation comparisons (no P/E, PEG).

Book Value (₹329) vs Price (₹366) → slight premium over assets.

Debt-to-Equity (0.11) → low leverage, favorable for stability.

🏦 Institutional Sentiment

FII Holding Change (–1.97%): Foreign investors cutting exposure — cautious outlook.

DII Holding Change (+2.07%): Domestic players increasing stake — potential medium-term optimism.

🎯 Swing Trade Strategy

📥 Entry Zone: Ideal entry would be around ₹348–₹354 on a small dip. Enter only if RSI stabilizes below 60 and volume picks up. MACD should remain positive.

📤 Exit Plan (If Holding): Target zone of ₹380–₹385. Watch for resistance as it nears the 52-week high. Trail stop-loss near ₹355 once the price clears ₹370 to protect profits.

🧠 Final Thoughts

INDIACEM presents a high-momentum, short-term swing opportunity. Fundamentals remain shaky, but recent earnings improvement and bullish technicals may offer traders a limited window. Stay nimble — momentum could fade quickly without volume support.

Would you like help comparing it to other cement sector plays that offer cleaner fundamentals and more sustainable breakouts? I can shortlist a few with stronger trend signals.

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