PERSISTENT - Swing Trade Analysis

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

📉 Swing Trade Analysis: Persistent Systems Ltd. (PERSISTENT)

Swing Trade Rating: 2.6

🔎 Weaknesses Limiting Swing Potential

Bearish Momentum

RSI at 30.2: Approaching oversold territory, indicating weak momentum.

MACD at −160: Deeply negative, signaling strong downtrend.

Price trading below both 50 DMA (₹5,640) and 200 DMA (₹5,474): Confirmed bearish structure.

Volume Drop

Current volume (4.16 lakh) is significantly below 1-week average (11.84 lakh): Suggests weak participation and waning interest.

Foreign Investor Caution: FII holding dropped slightly (−0.17%) — mild loss of confidence.

💡 Fundamental Strengths

High Profit Growth

PAT increase from ₹396 Cr. to ₹425 Cr., and quarterly variation at +38.7%.

EPS of ₹97.9 and strong ROE (24.1%) and ROCE (30.4%) — impressive profitability.

Low Debt (0.05): Very strong balance sheet.

PEG Ratio of 1.97: Shows growth-adjusted valuation is relatively fair.

DII Hold Increase (+0.92%): Domestic institutions showing some interest.

🎯 Optimal Entry Price

Wait-and-Watch Mode

Current price is ₹5,176 — but with RSI near oversold and weak volume, a reversal confirmation is needed.

Optimal entry would be around ₹5,050–₹5,150 after signs of bullish crossover in MACD and RSI climbing above 40.

🧭 Exit Strategy (If Already Holding)

Short-Term Target: ₹5,600–₹5,640

Near the 50 DMA — possible resistance level.

Stop-Loss: ₹5,000

Slight buffer below current price to protect against further downside.

Persistent has rock-solid fundamentals but is technically weak at the moment, making it a better candidate for a watchlist than an immediate swing trade. A confirmed trend reversal would make this stock far more compelling. If you want help setting up a watch trigger or comparing it against other IT midcaps, I’ve got you covered. 📈🛠️

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