NYKAA - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.1

📈 Analysis: NYKAA presents a cautious swing trade setup. The current price of ₹251 is slightly above the 50 DMA (₹245) and well above the 200 DMA (₹214), suggesting mild upward momentum. RSI at 49.3 and MACD at 1.95 indicate neutral-to-bullish sentiment. However, the extremely high P/E of 1,053 and negative PEG ratio (-521) point to severe overvaluation. The sharp drop in quarterly profit (-69.4%) and low return ratios (ROCE and ROE) further dampen the swing potential. Institutional interest is rising, which may support short-term recovery.

🎯 Optimal Entry Price: ₹240–₹245 (near 50 DMA support)

🚪 Exit Strategy (if holding): Consider exiting near ₹265–₹268 (recent high resistance) or if RSI crosses 60 with declining volume.

✅ Positive

• 📈 Price trading above 50 and 200 DMA — short-term bullish trend
• 📊 Rising institutional interest — FII (+0.91%) and DII (+1.35%) holdings increased
• 📉 Low debt (Debt/Equity: 0.05) — financial flexibility

⚠️ Limitation

• 📉 Extremely high P/E (1,053) and negative PEG — unsustainable valuation
• 📉 Weak ROCE (6.25%) and ROE (6.10%) — poor capital efficiency
• 📉 Quarterly profit decline (-69.4%) — earnings volatility
• 📉 EPS of ₹0.24 — low profitability

📰 Company Negative News

• Significant drop in quarterly profit raises concerns about operational performance and cost structure

🌟 Company Positive News

• Institutional investors increasing stake may reflect confidence in long-term brand strength

🏭 Industry

• Industry P/E is 41.6 — NYKAA trades at a massive premium
• Beauty and lifestyle e-commerce sector remains competitive but benefits from digital adoption and consumer trends

🧾 Conclusion

NYKAA is a speculative swing trade candidate with neutral technicals and weak fundamentals. Entry near 50 DMA offers a low-risk setup, but valuation and earnings concerns limit upside. Exit near resistance or on RSI/MACD confirmation.

I can also compare NYKAA’s valuation and momentum with peers like Mamaearth or Purplle to refine your swing strategy.