OFSS - Swing Trade Analysis

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

🔍 Swing Trade Analysis: Oracle Financial Services Software Ltd. (OFSS)

Swing Trade Rating: 3.4

📊 Strengths

Low Debt: Debt-to-equity is almost negligible (0.01), reducing financial risk.

Strong Profitability: ROCE (40.6%) and ROE (29.3%) show healthy returns.

Consistent PAT: Slight variance between quarters (642 Cr. vs 644 Cr.) indicates stable earnings.

High EPS: ₹277 per share suggests solid earnings performance.

⚠️ Concerns

Overvaluation: PEG ratio (3.91) and Stock P/E (31.3) are high vs. Industry PE (50.9) — signaling possibly overpriced stock for short-term trades.

Technical Weakness

RSI at 43: Momentum still bearish, not yet oversold.

MACD at -73.8: Strong downward signal.

Price Below 200 DMA: ₹8,664 is below both 50 DMA and 200 DMA, indicating weak price trend.

FII/DII Selling: Both institutional investors have marginally reduced holdings (−0.19%).

🎯 Entry Strategy

Wait for Support Near ₹8,300–8,500

Around this level, risk-reward becomes more favorable.

Look for RSI recovery towards 50+ and MACD crossover before entry.

🧭 Exit Plan (If Already Holding)

Exit on Bounce Towards ₹9,100–9,300

If technical indicators turn bullish and price nears 200 DMA.

Watch for volume confirmation (needs rise above 1-week average).

Stop-Loss Level: ₹8,150 — if price revisits lows or fails to gain upward momentum.

If you're swing trading OFSS, this is a play in patience and precision. The fundamentals are strong, but technicals need to align for the setup to shine. Want help plotting a chart or scanning similar stocks? I can help with that too.

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