NEWGEN - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.8
| Stock Code | NEWGEN | Market Cap | 8,062 Cr. | Current Price | 567 ₹ | High / Low | 1,379 ₹ |
| Stock P/E | 26.3 | Book Value | 103 ₹ | Dividend Yield | 0.88 % | ROCE | 27.8 % |
| ROE | 22.4 % | Face Value | 10.0 ₹ | DMA 50 | 758 ₹ | DMA 200 | 908 ₹ |
| Chg in FII Hold | -0.28 % | Chg in DII Hold | 0.10 % | PAT Qtr | 79.8 Cr. | PAT Prev Qtr | 76.7 Cr. |
| RSI | 18.0 | MACD | -71.2 | Volume | 6,52,329 | Avg Vol 1Wk | 5,05,658 |
| Low price | 544 ₹ | High price | 1,379 ₹ | PEG Ratio | 1.16 | Debt to equity | 0.03 |
| 52w Index | 2.74 % | Qtr Profit Var | -4.72 % | EPS | 20.0 ₹ | Industry PE | 25.1 |
📊 NEWGEN currently shows weak potential for swing trading. The stock is at 567 ₹, trading far below both its 50 DMA (758 ₹) and 200 DMA (908 ₹), reflecting strong bearish momentum. RSI at 18.0 indicates the stock is deeply oversold, while MACD at -71.2 confirms heavy negative sentiment. Fundamentals are decent with ROCE at 27.8% and ROE at 22.4%, but quarterly PAT declined slightly (76.7 Cr. → 79.8 Cr., -4.72% variation). Valuation is fair (P/E 26.3 vs industry 25.1, PEG 1.16), debt-to-equity is low (0.03), yet the sharp fall from its 52-week high (1,379 ₹) to current levels highlights caution.
✅ Optimal Entry Price: 550–565 ₹ (near support zone)
🚪 Exit Strategy (if already holding): Consider profit booking around 620–650 ₹ (short-term rebound zone), or exit if price falls below 540 ₹ with strong volume.
Positive
- 💡 Strong ROCE (27.8%) and ROE (22.4%) highlight efficiency.
- 📊 EPS of 20.0 ₹ supports earnings visibility.
- 📈 Debt-to-equity ratio of 0.03 indicates financial stability.
- 📦 Volume above weekly average shows active participation despite weakness.
Limitation
- ⚠️ RSI at 18.0 indicates oversold conditions, reflecting heavy selling pressure.
- 📉 Trading far below both 50 DMA and 200 DMA, showing strong bearish trend.
- 🔻 PEG ratio of 1.16 suggests limited growth efficiency.
- 📉 Dividend yield of only 0.88% offers modest income support.
Company Negative News
- 📉 Quarterly PAT variation at -4.72% shows earnings pressure.
- 🚫 FII holding decreased by -0.28%.
Company Positive News
- 📊 PAT remained stable (76.7 Cr. → 79.8 Cr.).
- 📈 DII inflows (+0.10%) show some domestic confidence.
- 📈 Strong ROCE and ROE support long-term fundamentals.
Industry
- 🏭 Industry P/E at 25.1 indicates sector is fairly valued.
- 📦 IT/software sector benefits from digital transformation and enterprise demand.
Conclusion
⚖️ NEWGEN is fundamentally stable but faces strong bearish technical signals and declining momentum. Entry near 550–565 ₹ may offer a cautious swing setup with rebound potential, but exit should be considered around 620–650 ₹. Risk management is essential if price breaks below 540 ₹, as downside could extend further.