KNRCON - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.8

🏗️ KNR Constructions Ltd (KNRCON) Swing Trade Analysis

KNRCON is currently in a technical downtrend, but its strong fundamentals and historically reliable support zones make it a watchlist candidate for a swing trade. The stock is trading near oversold levels and may offer a bounce if momentum reverses.

✅ Strengths

Valuation

P/E: 5.36 vs industry average of 23.8 — deeply undervalued

PEG Ratio: 0.11 — excellent growth-adjusted valuation

Profitability

ROCE: 29.2% and ROE: 27.5% — outstanding operational and equity efficiency

EPS: ₹35.6 — strong earnings base

Technical Setup

RSI: 38.8 — approaching oversold territory

MACD: -0.46 — bearish but flattening

Price near long-term support zone (~₹202–₹213)

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Institutional Sentiment

FII holding ↑ 0.15% — mild accumulation

⚠️ Weaknesses

Price Trend

Price below both 50 DMA (₹221) and 200 DMA (₹252) — confirms downtrend

52-week Index: +10.4% — weak relative strength

Profit Volatility

PAT dropped from ₹248 Cr to ₹81.3 Cr — steep decline

Qtr Profit Var: -76.1% — major concern

Volume

Current volume (6.02L) below weekly average (6.90L) — weak conviction

Dividend Yield: 0.12% — negligible income support

🎯 Optimal Entry Price

Entry Zone: ₹205–₹215

Near historical support and psychological ₹200 level

Confirm entry with RSI > 40 and MACD crossover

Look for bullish candlestick patterns like hammer or engulfing

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🚪 Exit Strategy (If Already Holding)

Short-Term Target: ₹235–₹245

Based on resistance near 50 DMA and Fibonacci retracement levels

Stop Loss: ₹198

Below support zone and recent lows

📌 Summary

KNRCON is a fundamentally strong but technically weak stock. It’s not ideal for aggressive swing trading right now, but a reversal near ₹205–₹215 could offer a low-risk entry. If already holding, consider exiting near ₹235–₹245 or trail stop loss to ₹198.

Would you like to explore other undervalued infra stocks with better momentum, like IRCON or PNC Infratech?

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