NYKAA - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 2.9

📊 Technical & Momentum Analysis

Breakout Zone: Current price ₹246 is just below the 52-week high of ₹249, indicating a potential breakout attempt.

Momentum Indicators: RSI at 67.7 is nearing overbought territory; MACD at 6.59 is positive but not accelerating.

Volume Drop: Current volume (33.7L) is below 1-week average (44.8L), suggesting waning interest at resistance.

Trend Confirmation: Price is above both 50 DMA (₹225) and 200 DMA (₹200), confirming bullish structure.

📈 Fundamental Snapshot

Extreme Valuation: P/E of 1,032 and PEG of -511 are red flags—valuation is disconnected from earnings reality.

Weak Profitability: ROCE 6.25%, ROE 6.10%—low efficiency for a ₹70,000 Cr company.

Zero Yield: No dividend support for holding periods.

Profit Decline: PAT dropped from ₹14.6 Cr to ₹12.9 Cr (−69.4% Qtr Var), indicating margin pressure.

Institutional Sentiment: FII increased (+2.80%) while DII reduced (−1.56%)—mixed signals.

🎯 Trade Strategy

🔹 Optimal Entry Price

₹220–₹225: Near 50 DMA with margin of safety. Wait for RSI to cool below 60 and MACD to show renewed strength before entry.

🔹 Exit Strategy (If Already Holding)

₹248–₹255: Current zone is near resistance. Consider exiting if RSI crosses 70 or MACD flattens.

Trailing Stop: ₹235 to protect gains.

🧠 Summary

NYKAA is in a technical uptrend but carries extreme valuation and weak profitability. It’s suitable only for short-term breakout trades, not sustained swings. Entry near 50 DMA offers better risk-reward, while current levels demand caution unless volume and MACD accelerate.

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