KAYNES - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.6

🔌 Swing Trade Analysis: KAYNES Technology India Ltd.

KAYNES shows strong technical momentum and institutional support, but its extremely high valuation and overbought indicators suggest caution for new swing entries.

✅ Strengths

Technical Momentum: Price ₹7,229 is well above both 50-DMA (₹6,433) and 200-DMA (₹5,714), confirming a strong uptrend.

MACD (297): Strongly positive — indicates bullish momentum.

RSI (75.0): Overbought — signals strength but also warns of a potential pullback.

Profitability: ROCE (11.9%) and ROE (7.97%) are moderate but stable.

DII Sentiment: Significant increase (+5.41%) — strong institutional support.

Debt-to-Equity: Low at 0.24 — financially sound.

⚠️ Weaknesses

Valuation: P/E of 225 vs industry average of 37.5 and PEG ratio of 3.20 — extremely overvalued.

Earnings Decline: PAT dropped from ₹60.4 Cr to ₹54.3 Cr — slight sequential dip.

Volume: Below weekly average — suggests waning short-term interest.

FII Sentiment: Declined (-0.46%) — mildly bearish.

RSI Overbought: Indicates limited upside before a potential correction.

🎯 Optimal Entry Price

Buy Zone: ₹6,600–₹6,750

Wait for RSI to cool below 65 and MACD to stabilize before entering.

🚪 Exit Strategy (If Holding)

Target Exit: ₹7,750–₹7,825

Near recent highs; exit if RSI crosses 80 or MACD flattens.

Stop Loss: ₹6,500

Below this level, trend support weakens.

⚖️ Verdict

KAYNES is a moderate swing trade candidate, best suited for momentum traders already holding the stock. New entries should wait for a pullback, as current levels reflect overbought conditions and stretched valuation.

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