NATIONALUM - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.4

📈 Swing Trade Analysis: NATIONALUM (National Aluminium Company Ltd.)

NATIONALUM presents a strong swing trade setup, combining attractive valuation, robust fundamentals, and bullish technical indicators. While volume has dipped slightly, the overall setup favors short-term momentum traders.

✅ Strengths

Valuation & Profitability

P/E (6.79) vs Industry PE (20.4): Deeply undervalued.

PEG Ratio (0.31): Indicates strong growth at a low valuation.

ROCE (43.7%) and ROE (32.6%): Excellent capital efficiency.

EPS (₹31.5) and Book Value (₹98.2): Strong earnings and asset base.

Dividend Yield (4.91%): Attractive for short-term holders.

Debt-to-Equity (0.01): Virtually debt-free.

Technical Momentum

MACD (6.78): Bullish crossover, signaling upward momentum.

RSI (64.8): Positive, nearing overbought but still tradable.

Price above 50 DMA (₹198) and 200 DMA (₹190): Confirms bullish trend.

52w Index (60.7%): Strong recovery from lows.

Earnings Growth

Qtr Profit Var (77%): Strong year-over-year growth.

⚠️ Risks

Volume (57.9L) below 1-week average (79.8L): Slight dip in trader interest.

FII Holding Decline (-0.75%): Foreign investors pulling back.

PAT Qtr (₹1,064 Cr.) vs Prev Qtr (₹2,078 Cr.): Sequential decline.

🎯 Optimal Entry Price

Entry Zone: ₹200–₹205

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

🚪 Exit Strategy (If Already Holding)

Target Exit Price: ₹240–₹250

Below recent high and psychological resistance.

Stop Loss: ₹195

Just below 50 DMA and support zone.

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

This setup suits momentum-driven traders looking for short-term gains in a fundamentally strong, undervalued stock. Let me know if you'd like help tracking this trade or scanning similar setups.

Edit in a page