KPITTECH - Swing Trade Analysis

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

Swing Trade Rating: 4.2

🚗 KPIT Technologies Ltd (KPITTECH) Swing Trade Analysis

KPITTECH is currently in a technical correction phase, but its strong fundamentals, improving profitability, and strategic growth outlook make it a promising candidate for a swing trade once momentum stabilizes. The stock is trading near key support zones and has shown bullish candlestick patterns recently

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✅ Strengths

Fundamentals

ROCE: 40.9% and ROE: 33.2% — exceptional efficiency

EPS: ₹30.6 — strong earnings base

Debt-to-equity: 0.12 — low leverage

PEG Ratio: 0.90 — fairly valued relative to growth

PAT growth: ₹187 Cr → ₹245 Cr — solid quarterly performance

Institutional Sentiment

DII holding ↑ 1.07% — positive domestic accumulation

Strategic Outlook

Large deal wins and robust pipeline expected to boost H2 FY26 growth

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⚠️ Weaknesses

Technical Indicators

RSI: 37.8 — approaching oversold

MACD: -21.2 — bearish momentum

Price below 50 DMA (₹1,284) and 200 DMA (₹1,353) — confirms short-term weakness

Volume: Current volume (5.47L) below weekly average (8.58L) — weak conviction

Valuation

P/E: 39.8 vs industry average of 29.1 — slightly overvalued

Book Value: ₹106 vs current price ₹1,218 — trading at 11.5x book

FII Sentiment: FII holding ↓ 1.68% — mild foreign selling

🎯 Optimal Entry Price

Entry Zone: ₹1,180–₹1,210

Near Fibonacci support and psychological ₹1,200 level

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Confirm entry with RSI > 40 and MACD flattening

Look for bullish candlestick confirmation (e.g., Morning Star, Engulfing)

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🚪 Exit Strategy (If Already Holding)

Short-Term Target: ₹1,280–₹1,320

Based on resistance near 50 DMA and pivot levels

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Stop Loss: ₹1,140

Below recent support and pivot S2 zone

📌 Summary

KPITTECH is a high-quality tech stock with strong fundamentals and a promising growth outlook. While technicals are weak, the stock is nearing a support zone and could offer a low-risk swing trade if momentum reverses. Entry near ₹1,180–₹1,210 with a target of ₹1,280–₹1,320 and a stop loss at ₹1,140 provides a favorable setup.

Would you like to compare this with other auto-tech or embedded software stocks like Tata Elxsi or L&T Technology Services?

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in.investing.com

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www.topstockresearch.com

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CNBCTV18

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