INDUSTOWER - Swing Trade Analysis

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

Swing Trade Rating: 3.5

📉 Technical Outlook

Price Action: Current price (₹391) is below DMA 50 (₹398) but above DMA 200 (₹372) — indicates short-term weakness in a longer-term upward bias.

RSI (41.4): Momentum slightly weak; not oversold, but lacks strength.

MACD (–2.65): Negative zone — not ideal for entry yet.

Volume slightly below weekly average — no strong confirmation of demand.

📊 Fundamentals Snapshot

Valuation

P/E (10.6) vs Industry PE (22.2) → significantly undervalued.

PEG Ratio (0.62) suggests favorable growth-adjusted valuation.

Profitability

ROCE (29.2%) and ROE (33.4%) → excellent capital efficiency.

EPS (₹36.8) confirms earnings strength.

Debt-to-Equity (0.65) → moderate gearing; manageable.

Dividend Yield: Nil — neutral impact for swing trading.

📥 Institutional Behavior & Earnings

FII Holding Change (+1.09%) → increasing foreign confidence.

DII Holding Change (–0.25%) → slightly bearish domestic stance.

PAT Dip: ₹1,779 Cr vs ₹4,003 Cr → notable decline; likely seasonal or due to one-time adjustments.

Quarterly Profit Var (–3.99%) → relatively stable.

🎯 Trade Strategy

📌 Entry Zone

Ideal entry: ₹385–₹390 range, if

RSI crosses 45

MACD flattens or trends upward

Volume picks up above weekly average

If price retests ₹375–₹380, it may offer deeper value with tighter risk.

📤 Exit Strategy (If Holding)

Short-term resistance: ₹405–₹410

Stretch target: ₹428–₹435, aligned with 52w range midpoint

Full exit near ₹455–₹460 if MACD flips positive and RSI climbs past 60 with strong volume

🧠 Final Take

INDUSTOWER blends undervaluation with strong returns and decent institutional interest. However, technical indicators suggest caution. This is a candidate for momentum-based entry, not a blind buy. Best kept on radar as a swing setup forming — not quite firing yet.

Want me to scan telecom infrastructure stocks with active MACD crossovers or RSI climbs for sharper entries? I can line up a few worth watching.

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