MPHASIS - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.9

📊 Swing Trade Analysis: MPHASIS

MPHASIS offers a moderately strong swing trade setup, driven by solid technical momentum and excellent profitability. However, elevated valuation and recent earnings contraction suggest a cautious approach.

✅ Strengths

Technical Momentum

MACD (49.3): Strong bullish crossover.

RSI (63.0): Positive momentum, not yet overbought.

Price above 50 DMA (₹2,819) and 200 DMA (₹2,712): Confirms bullish trend.

Volume above average: Indicates active trader interest.

Fundamentals

ROCE (33.7%) and ROE (25.2%): Excellent capital efficiency.

EPS (₹74.6) and Dividend Yield (1.90%): Strong earnings and decent income.

Debt-to-Equity (0.02): Virtually debt-free.

DII Holding Increase (+1.60%): Positive domestic sentiment.

⚠️ Risks

High P/E (40.3) vs Industry PE (30.0): Overvalued.

PEG Ratio (5.50): Indicates poor growth relative to valuation.

Quarterly Profit Decline (-28.1%): Earnings contraction.

FII Holding Decline (-1.62%): Foreign investors pulling back.

🎯 Optimal Entry Price

Entry Zone: ₹2,820–₹2,850

A pullback near the 50 DMA offers a better risk-reward setup.

🚪 Exit Strategy (If Already Holding)

Target Exit Price: ₹3,200–₹3,240

Near recent highs and resistance zone.

Stop Loss: ₹2,780

Just below 50 DMA and support zone.

Time Horizon: 1–2 weeks, depending on volume and RSI behavior.

This setup suits momentum-driven traders who are comfortable with premium valuations and can manage short-term volatility. Let me know if you'd like help tracking this trade or exploring similar setups.

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