PATANJALI - Swing Trade Analysis

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

📊 Swing Trade Analysis: Patanjali Foods Ltd. (PATANJALI)

Swing Trade Rating: 3.8

✅ Pros for a Swing Setup

Strong Price Action

RSI at 65.9: Indicates bullish momentum, though nearing overbought levels.

MACD at 59.7: A strong upward crossover shows trend strength.

Price above 50 DMA (₹1,769) and 200 DMA (₹1,755): Confirms an established uptrend.

Institutional Support

DII holdings increased by 2.51% — confidence from domestic investors.

Low Debt (0.07): Offers balance sheet stability, reducing downside risk.

EPS of ₹35.9 and consistent profits across quarters (₹359 Cr. vs ₹371 Cr.): Reliable earnings.

Trading Near Highs: Current price of ₹1,887 is approaching 52-week high of ₹2,030, suggesting breakout potential.

⚠️ Points of Caution

Valuation Stretch

Stock P/E of 52.5 is well above industry average (30.2) — expensive on earnings.

No PEG ratio data — harder to judge growth-adjusted value.

FII Selling (−0.43%): Mild pessimism from foreign investors.

Volume Dip: Current volume is below the 1-week average — waning interest could affect momentum.

🎯 Optimal Entry Price

Entry Zone: ₹1,830–₹1,850

Slight pullback from current levels may offer better risk-reward.

Watch for sustained RSI in the 60–65 range and MACD strength.

🧭 Exit Strategy (If Already Holding)

Target Zone: ₹1,970–₹2,000

Just below 52-week high — consider booking profits here.

Stop-Loss: ₹1,765

Slightly below 50 DMA — protects against unexpected reversals.

Patanjali shows promise as a short-term swing trade with technical strength and decent fundamentals. You’re playing momentum here — just keep an eye on volume and RSI nearing overbought. If you’d like to build a comparative table with other FMCG stocks or visualize this setup on a chart, I’d be glad to help. 📈🧮

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