IREDA - Swing Trade Analysis

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

Swing Trade Rating: 2.7

📉 Technical Pulse

Current Price (₹150) is below both 50 DMA (₹164) and 200 DMA (₹175) — confirms a steady downtrend.

RSI (27.2): Deeply oversold — signals potential for a short-term bounce, but not yet safe to enter.

MACD (–4.32): Strong bearish signal — negative divergence points to continued weakness.

Volume: Above weekly average — suggests some participation but likely opportunistic rather than bullish.

📊 Fundamental Snapshot

Valuation

P/E (24.9) is nearly aligned with Industry PE (24.6) — fairly valued on earnings.

PEG Ratio missing — limits clarity on earnings-adjusted valuation.

Profitability

ROCE (9.37%) & ROE (18.0%) — moderate but not exciting for swing momentum.

Debt/Equity (6.31) — very high leverage; risky profile especially during volatility.

Dividend Yield: Zero — no income buffer during sideways moves.

📈 Earnings & Ownership Trends

Quarterly Profit Fall: ₹247 Cr from ₹502 Cr — over 50% decline; unattractive for short-term upside.

Institutional Interest: FII (+0.30%) and DII (+2.44%) increases — positive sentiment in background, but not enough to shift technicals.

EPS (₹6.32) — reasonable earnings performance.

🎯 Trade Strategy

📥 Entry Point

Prefer entry near ₹142–₹145 only if RSI climbs above 35 and MACD flattens out.

A test of ₹138–₹140 may serve as a bounce zone, but confirmation is key.

📤 Exit Strategy (If Holding)

Initial recovery could target ₹158–₹160.

Stretch profit zone: ₹168–₹172, if momentum builds with RSI > 55 and MACD turns positive.

Exit fully near ₹175–₹180 — aligns with 200 DMA resistance ceiling.

🧠 Final Take

IREDA’s fundamentals are relatively stable but saddled by high debt and a sharp PAT contraction. Technically, the chart is weak and oversold — not ideal for a clean swing unless clear reversal cues emerge. Keep this on watch for bounce signals, but trade defensively and with tight stop-losses.

If you're hunting for cleaner swing setups in the renewable sector with positive MACD and rising RSI, I can surface sharper candidates for you. Want me to dig into that?

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