OLAELEC - Swing Trade Analysis

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

Swing Trade Rating: 2.1

📉 Technical & Momentum Analysis

Current Price (₹41.7) is below both 50 DMA (₹45.0) and 200 DMA (₹61.0) — confirms strong downtrend.

RSI (45.9) — neutral, but no signs of reversal.

MACD (−0.91) — negative, indicating continued bearish momentum.

Volume: Significantly below 1-week average — fading interest and weak conviction.

📊 Fundamental Overview

Valuation

No P/E or PEG Ratio — due to negative earnings.

EPS (−₹5.34) — consistent losses.

Book Value (₹11.7) — price trades at ~3.56× book value, not justified by fundamentals.

Profitability

ROCE (−28.1%) and ROE (−108%) — extremely poor efficiency and return metrics.

Dividend Yield (0.00%) — no income potential.

Quarterly Performance

PAT Qtr: −₹428 Cr vs Prev Qtr: −₹870 Cr — losses narrowing, but still deep in red (−32.1% YoY).

Debt-to-Equity (0.69) — moderately high, adds financial risk.

FII/DII Holding

FII up (+1.58%), DII down (−0.06%) — speculative interest from foreign investors.

⚠️ Swing Trade Strategy

Not a good candidate for swing trading due to

Weak technicals

Deep financial losses

Lack of momentum and institutional conviction

Avoid Entry unless speculative bounce is confirmed with RSI > 50 and MACD crossover.

Watchlist Entry Zone: ₹39–₹41 (only if volume spikes and trend reverses)

Target Exit (if bounce occurs): ₹48–₹52

Stop Loss: ₹38 (below recent low)

🧭 If You Already Hold the Stock

Exit on any bounce toward ₹48–₹52.

Cut losses if price breaks below ₹38 or RSI dips below 40 with MACD widening negatively.

Ola Electric is currently a high-risk, low-conviction stock with poor fundamentals and bearish technicals. It’s not suitable for swing trading unless a strong reversal pattern emerges.

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