NUVAMA - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.7

📈 Technical & Momentum Analysis

Current Price (₹7,210) is slightly below 50 DMA (₹7,294) but well above 200 DMA (₹6,489) — mild short-term weakness, long-term strength.

RSI (42.9) — approaching oversold territory, but not yet signaling reversal.

MACD (6.95) — mildly positive, suggesting weak momentum.

Volume: Below 1-week average — indicates reduced trading interest, possible consolidation.

📊 Fundamental Overview

Valuation

P/E (26.4) vs Industry P/E (15.4) — moderately overvalued.

PEG Ratio (0.50) — excellent, implies undervalued growth.

EPS (₹274) — very strong earnings.

Book Value (₹970) — price trades at ~7.4× book value, reasonable for financials.

Profitability

ROCE (20.4%) and ROE (30.9%) — strong efficiency and returns.

Dividend Yield (2.00%) — attractive for swing traders.

Quarterly Performance

PAT Qtr: ₹255 Cr vs Prev Qtr: ₹252 Cr — stable growth (+41.2% YoY).

Debt-to-Equity (2.25) — high leverage, typical for financial firms but adds risk.

FII/DII Holding

FII up (+0.56%), DII up (+0.55%) — positive institutional sentiment.

✅ Swing Trade Strategy

Optimal Entry Price: ₹7,100–₹7,200 (near current price and support zone)

Target Exit Price: ₹7,800–₹8,000 (resistance zone below recent high of ₹8,510)

Stop Loss: ₹6,950 (below psychological support and 200 DMA buffer)

🧭 If You Already Hold the Stock

Hold with a target of ₹7,800–₹8,000.

Exit if price breaks below ₹6,950 or RSI dips below 40 with MACD turning negative.

This stock has solid fundamentals and institutional support, but short-term technicals are slightly weak. It’s a decent swing trade candidate if entered near support with a disciplined exit strategy.

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