KARURVYSYA - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.1

🏦 Swing Trade Analysis: KARURVYSYA (Karur Vysya Bank Ltd.)

Karur Vysya Bank presents a strong swing trade setup with solid fundamentals, favorable valuation, and technical support, though momentum indicators suggest a cautious entry.

✅ Strengths

Valuation: P/E of 10.6 is attractively below industry average (12.6), and PEG ratio of 0.25 indicates undervaluation relative to growth.

Profitability: ROE (17.6%) is strong, and PAT has grown steadily (₹513 Cr → ₹521 Cr).

Technical Support: Price ₹219 is above both 50-DMA (₹212) and 200-DMA (₹197), confirming a bullish trend.

Institutional Sentiment: FII (+0.29%) and DII (+0.60%) holdings increased — positive signal.

Volume: Healthy, though slightly below weekly average — still shows active interest.

Dividend Yield: 0.99% — adds holding incentive.

⚠️ Weaknesses

MACD (-0.62): Slightly negative — momentum is soft and needs confirmation.

ROCE (7.38%): Moderate — could be stronger for capital efficiency.

RSI (60.2): Mildly bullish — approaching overbought territory.

Debt-to-Equity: High at 8.66 — typical for banks but worth monitoring.

🎯 Optimal Entry Price

Buy Zone: ₹210–₹215

Near 50-DMA support; wait for MACD to flatten or turn positive for confirmation.

🚪 Exit Strategy (If Holding)

Target Exit: ₹228–₹231

Near recent highs; exit if RSI crosses 70 or MACD remains negative.

Stop Loss: ₹205

Below this level, trend support weakens.

⚖️ Verdict

KARURVYSYA is a strong swing trade candidate, especially for value-focused traders. Entry near support and disciplined exit near resistance can yield favorable short-term returns.

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