PATANJALI - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 3.2

📊 Swing Trade Analysis: Patanjali Foods Ltd (PATANJALI)

Patanjali Foods presents a mixed swing trade setup, with decent technical positioning but weak earnings momentum and high valuation. It may offer a short-term opportunity, but traders should be cautious and watch for confirmation signals.

✅ Strengths

Technical Support

Current price ₹606 is slightly above DMA50 (₹598) and DMA200 (₹590), indicating a mild uptrend.

MACD: 0.08 → Slight bullish crossover.

RSI: 55.2 → Neutral zone, with room to rise.

Strong Volume

Current volume (14.92L) > 1-week average (11.45L) → Increased trading interest.

Institutional Confidence

DII Holding ↑ 2.51% → Strong domestic accumulation.

Debt-to-Equity: 0.07 → Low leverage, financially stable.

⚠️ Weaknesses

High Valuation

P/E: 54.1 vs Industry PE: 29.3 → Overvalued.

PEG Ratio: 3.11 → Expensive relative to growth.

Earnings Decline

PAT dropped from ₹359 Cr. to ₹180 Cr. → -31.4% quarterly variation.

ROCE: 15.6% and ROE: 12.1% → Moderate capital efficiency.

EPS: ₹11.2 → Relatively low for current price.

FII Holding Down (-0.43%) → Reduced foreign investor interest.

🎯 Optimal Entry Price

Buy Zone: ₹585–₹595

Near DMA200 and support levels, offering better risk-reward entry.

🚪 Exit Strategy (If Holding)

Target Exit: ₹640–₹660

Based on recent resistance and swing potential.

Stop Loss: ₹575

Below DMA200 to manage downside risk.

This setup suits short-term traders who can monitor momentum closely and exit on strength. Let me know if you'd like help tracking MACD or RSI signals for timing your entry.

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