JSWENERGY - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 2.7

⚡ Swing Trade Analysis: JSWENERGY

JSW Energy shows signs of technical recovery but is weighed down by weak fundamentals and valuation concerns, making it a cautious swing trade candidate.

📉 Technical Indicators

Price vs DMA: Current price ₹538 is slightly above 50-DMA (₹520) and just above 200-DMA (₹536), indicating a fragile uptrend.

RSI (60.3): Mildly bullish, but not in overbought territory — room for short-term upside.

MACD (3.58): Positive, suggesting momentum is building.

Volume: Significantly below weekly average — indicates lack of strong buying interest.

📊 Fundamental Snapshot

Valuation: P/E of 83.2 is extremely high vs industry average (31.2), and PEG ratio of 3.04 confirms overvaluation.

Profitability: ROCE (5.82%) and ROE (6.24%) are weak — poor capital efficiency.

Earnings Decline: PAT dropped sharply from ₹464 Cr to ₹162 Cr — a major red flag.

Debt-to-Equity: 0.44 — manageable, but not a strong compensating factor.

Institutional Sentiment: FII holdings declined (-1.07%), DII slightly increased (+0.49%) — mixed signals.

🎯 Optimal Entry Price

Buy Zone: ₹515–₹525

Near 50-DMA support; wait for confirmation of volume pickup and MACD strength.

🚪 Exit Strategy (If Holding)

Target Exit: ₹570–₹590

Short-term resistance zone; consider exiting if RSI crosses 70 or MACD flattens.

Stop Loss: ₹510

Below this level, trend support breaks down.

⚖️ Verdict

JSWENERGY is not an ideal swing trade at current levels due to poor earnings momentum, high valuation, and weak profitability. Traders should be cautious and only consider entry if technical indicators strengthen and volume improves.

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