KARURVYSYA - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 4.2

📊 Karur Vysya Bank (KARURVYSYA) shows strong potential for swing trading. The stock is trading above both its 50 DMA (242 ₹) and 200 DMA (217 ₹), reflecting bullish momentum. RSI at 53.1 indicates neutral strength, while MACD is slightly positive, suggesting a continuation of upward trend. Fundamentally, the bank has a low P/E (11.6 vs industry 14.7), strong ROE (17.6%), and consistent profit growth (+21.2% QoQ). However, high debt-to-equity (8.83) reflects the nature of banking leverage.

💡 Optimal Entry Price: Around 245–250 ₹ (near support zone, close to 50 DMA).

🚪 Exit Strategy: If already holding, consider exiting near 258–265 ₹ (recent high and resistance zone) or if RSI crosses 65 with weakening momentum.

✅ Positive

• 📈 EPS of 21.8 ₹ supports strong earnings
• 💰 Attractive valuation with P/E of 11.6 vs industry 14.7
• 📊 Quarterly PAT growth from 521 Cr. to 574 Cr. (+21.2%)
• 📦 Stock trading above both 50 DMA and 200 DMA shows bullish trend

⚠️ Limitation

• 📉 Debt-to-equity ratio at 8.83 is high (typical for banks but adds leverage risk)
• 📊 ROCE at 7.38% is modest compared to ROE
• 📉 Trading volume slightly below weekly average (8,72,908 vs 10,82,268)

🚨 Company Negative News

• 📉 High leverage reflected in debt-to-equity ratio
• 📊 Limited improvement in ROCE despite profit growth

🌟 Company Positive News

• 📈 PAT increased from 521 Cr. to 574 Cr. sequentially
• 💡 FII holdings increased (+0.40%) and DII holdings also rose (+0.50%)

🏭 Industry

• 📊 Industry P/E at 14.7, Karur trades at a discount valuation
• 🏦 Banking sector remains supported by credit growth and rising profitability

📌 Conclusion

⚖️ Karur Vysya Bank is a good candidate for swing trading. Fundamentals are strong with profit growth and attractive valuation, while technical indicators show bullish momentum. A cautious entry near 245–250 ₹ could provide upside potential toward 258–265 ₹. Traders should monitor RSI and volume trends to confirm momentum before committing to positions.

I can also highlight short-term breakout levels to help you track potential upside beyond the 258 ₹ resistance.