NEWGEN - Swing Trade Analysis with AI Signals
Back to ListHere’s the structured swing trade analysis for NEWGEN based on the given parameters
📊 Swing Trade Rating: 3.9
| Stock Code | NEWGEN | Market Cap | 6,967 Cr. | Current Price | 488 ₹ | High / Low | 1,238 ₹ |
| Stock P/E | 22.0 | Book Value | 115 ₹ | Dividend Yield | 1.23 % | ROCE | 26.2 % |
| ROE | 20.8 % | Face Value | 10.0 ₹ | DMA 50 | 480 ₹ | DMA 200 | 651 ₹ |
| Chg in FII Hold | -2.86 % | Chg in DII Hold | -0.83 % | PAT Qtr | 110 Cr. | PAT Prev Qtr | 79.8 Cr. |
| RSI | 55.2 | MACD | 3.26 | Volume | 7,76,546 | Avg Vol 1Wk | 27,79,898 |
| Low price | 401 ₹ | High price | 1,238 ₹ | PEG Ratio | 0.92 | Debt to equity | 0.02 |
| 52w Index | 10.4 % | Qtr Profit Var | 8.13 % | EPS | 20.0 ₹ | Industry PE | 21.0 |
NEWGEN shows fair swing trade potential. The current price of 488 ₹ is near the 50 DMA (480 ₹) but well below the 200 DMA (651 ₹), reflecting short-term support but long-term weakness. RSI at 55.2 suggests neutral momentum, while MACD at 3.26 indicates mild bullish undertones. Fundamentals are strong with ROCE at 26.2%, ROE at 20.8%, and EPS at 20.0 ₹. Valuation is fair (P/E 22.0 vs industry 21.0, PEG 0.92), supported by low debt-to-equity (0.02) and dividend yield of 1.23%. However, declining institutional holdings raise caution.
Optimal Entry Price: 470–485 ₹, near 50 DMA support.
Exit Strategy if Holding: Consider profit booking around 520–540 ₹. If momentum sustains, monitor for breakout toward 600 ₹, though resistance remains strong near 651 ₹ (200 DMA).
✅ Positive
- 📈 Strong ROCE (26.2%) and ROE (20.8%).
- 💹 EPS of 20.0 ₹ supports earnings visibility.
- 📊 PAT growth (110 Cr. vs 79.8 Cr.) shows earnings momentum.
- 📉 Debt-to-equity ratio of 0.02 ensures financial stability.
- 💰 Dividend yield of 1.23% provides shareholder returns.
⚠️ Limitation
- 📉 Price trading below 200 DMA (651 ₹), showing long-term weakness.
- 📊 RSI at 55.2 indicates neutral momentum, not strongly bullish.
- 📉 Average weekly volume (27.8L) is much higher than current volume (7.7L), showing reduced participation.
🚨 Company Negative News
- 📉 Decline in institutional holdings (FII -2.86%, DII -0.83%).
- ⚠️ Stock trading well below 200 DMA indicates long-term weakness.
🌟 Company Positive News
- 📈 Quarterly PAT improved (+8.13%).
- 💹 Strong fundamentals with high ROCE and ROE.
🏭 Industry
- 📊 Industry P/E at 21.0 is in line with NEWGEN’s P/E (22.0), showing fair valuation.
- 💻 Technology sector has long-term growth potential but faces volatility.
📌 Conclusion
⚖️ NEWGEN is a fair candidate for swing trading with strong fundamentals and reasonable valuation. Entry near 470–485 ₹ offers a balanced risk-reward setup, with profit-taking recommended around 520–540 ₹. Weak institutional confidence and long-term technical weakness warrant caution, but short-term momentum supports a moderate swing opportunity.
Would you like me to extend this with a peer comparison against companies like Tata_Elxsi, Persistent_Systems, and LTTS to highlight relative swing trade positioning?