OFSS - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.8

📊 Based on the given parameters, OFSS shows strong fundamentals but weak short-term momentum. The RSI at 31.2 indicates oversold conditions, while MACD is negative, suggesting bearish momentum. This makes it a cautious but potentially rewarding swing trade candidate.

💡 Optimal Entry Price: Around 7,200–7,400 ₹ (close to support levels and oversold RSI).

🚪 Exit Strategy: If already holding, consider exiting near 8,200–8,500 ₹ (DMA 50 resistance zone) or trail stop-loss below 7,000 ₹.

✅ Positive

• 📈 Strong ROCE (62.5%) and ROE (48.8%) indicating efficient capital use.
• 💰 Healthy dividend yield of 3.38% supports investor returns.
• 🛡️ Debt-free balance sheet (Debt-to-equity: 0.00).
• 📊 PEG ratio of 0.89 suggests undervaluation compared to growth.

⚠️ Limitation

• 📉 Current price below DMA 50 and DMA 200, showing weak technical trend.
• 🔻 Quarterly profit declined (-6.94% variation).
• 📊 Lower trading volume compared to average, indicating reduced momentum.

🚨 Company Negative News

• 📉 Decline in quarterly PAT from 587 Cr. to 463 Cr.
• ⚠️ Weak momentum indicators (negative MACD, RSI near oversold).

🌟 Company Positive News

• 💼 Stable fundamentals with strong EPS (388 ₹).
• 📈 FII holdings increased slightly (+0.11%).
• 💰 Consistent dividend payout history.

🏭 Industry

• 📊 Industry PE at 39.9 vs stock PE of 20.2, showing relative undervaluation.
• 🌐 IT sector remains resilient with long-term demand outlook.

📝 Conclusion

⚖️ OFSS is fundamentally strong but technically weak in the short term. It can be considered for swing trading with cautious entry near support levels (7,200–7,400 ₹). Exit should be planned near resistance (8,200–8,500 ₹). Risk management is crucial due to declining quarterly profits and weak momentum.

Would you like me to also compare OFSS with another IT stock to see if it offers a better swing trading opportunity?