NEWGEN - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.5

📊 Swing Trade Analysis: NEWGEN (Newgen Software Technologies Ltd.)

NEWGEN presents a mixed swing trade setup. While the fundamentals are solid and the stock is trading near a potential support zone, technical indicators and recent earnings softness suggest caution. It may suit traders looking for a rebound play with tight risk management.

✅ Strengths

Fundamentals

ROCE (27.8%) and ROE (22.4%): Strong capital efficiency.

EPS (₹21.2) and Book Value (₹99.8): Solid earnings and asset base.

Debt-to-Equity (0.03): Virtually debt-free.

DII Holding Increase (+0.33%): Positive domestic sentiment.

Qtr Profit Var (+14.9%): Year-over-year growth.

Valuation

P/E (43.5) vs Industry PE (30.0): Slightly overvalued but not extreme.

PEG Ratio (1.91): Fair growth-adjusted valuation.

Volume Surge

Volume (72.1L) far above 1-week average (16.1L): Indicates strong trader interest.

⚠️ Weaknesses

Technical Indicators

MACD (-5.54): Bearish crossover — signals weak momentum.

Price below 50 DMA (₹931) and 200 DMA (₹1,037): Downtrend still intact.

RSI (56.9): Neutral zone, lacks breakout strength.

Earnings Dip

PAT Qtr (₹48.7 Cr.) vs Prev Qtr (₹101 Cr.): Sequential decline.

FII Holding Decline (-0.22%): Slight foreign investor pullback.

52w Index (16.9%): Trading near yearly lows — sentiment remains weak.

🎯 Optimal Entry Price

Entry Zone: ₹880–₹900

A dip near this level offers a better risk-reward setup, especially if MACD starts to reverse and RSI moves above 60.

🚪 Exit Strategy (If Already Holding)

Target Exit Price: ₹1,000–₹1,050

Near 200 DMA and psychological resistance.

Stop Loss: ₹860

Just below recent support and volume base.

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

This setup suits swing traders who are comfortable with short-term volatility and can monitor technical signals closely. Let me know if you'd like help tracking this trade or exploring stronger momentum setups.

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