KNRCON - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.8

🏗️ Swing Trade Analysis: KNRCON

KNR Constructions Ltd. offers a value-driven swing trade setup with strong fundamentals and technical support, though recent earnings volatility and weak momentum indicators suggest a cautious approach.

✅ Strengths

Valuation: P/E of 8.91 is significantly below industry average (20.6), and PEG ratio of 0.34 indicates undervaluation.

Profitability: ROCE (27.4%) and ROE (20.5%) are excellent — strong operational efficiency.

Debt-Free: Debt-to-equity ratio of 0.00 — excellent financial health.

Technical Support: Current price ₹208 is slightly above 50-DMA (₹205), offering a short-term base.

FII Sentiment: Slight increase (+0.15%) — mildly positive.

⚠️ Weaknesses

MACD (-1.40): Negative — suggests weak momentum.

RSI (59.9): Neutral — no strong directional bias.

Volume: Significantly below weekly average — reduced short-term interest.

DII Sentiment: Declined (-3.21%) — bearish institutional signal.

Earnings Volatility: PAT dropped from ₹75.2 Cr to ₹51.3 Cr — a notable decline.

52w Index (10.9%): Trading near the lower end of its yearly range — sentiment remains weak.

🎯 Optimal Entry Price

Buy Zone: ₹200–₹205

Near 50-DMA and recent support; wait for MACD to flatten and volume to improve.

🚪 Exit Strategy (If Holding)

Target Exit: ₹225–₹235

Near short-term resistance; exit if RSI approaches 70 or MACD turns positive.

Stop Loss: ₹195

Below this level, downside risk increases.

⚖️ Verdict

KNRCON is a moderately strong swing trade candidate, ideal for value-focused traders. Entry near support with tight risk controls could yield favorable returns if momentum improves.

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