PETRONET - Swing Trade Analysis

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

📉 Swing Trade Analysis: Petronet LNG Ltd. (PETRONET)

Swing Trade Rating: 2.9

🚦 Technical Snapshot

Downtrend Bias

RSI at 36.8: Hovering near oversold territory — bearish momentum.

MACD at −0.84: Indicates short-term weakness, no sign of bullish crossover yet.

Stock trading below both 50 DMA (₹304) and 200 DMA (₹309): Confirms technical pressure.

Price Trend: Currently at ₹293, far off its 52-week high of ₹385 — shows diminished momentum.

📈 Fundamental Positives

Attractive Valuation

Stock P/E of 11.8 is well below industry average (18.5), making it relatively undervalued.

PEG Ratio of 2.41: Slightly high, suggests the stock’s growth isn’t fully justifying its price.

Healthy Returns & Balance Sheet

ROCE (25.6%) and ROE (21.3%): Solid profitability metrics.

Debt to Equity of 0.13: Strong financial footing.

Dividend Yield of 3.41%: Good passive income potential.

EPS of ₹24.7 and consistent profitability across quarters — though recent PAT is down by 23.8%.

🔥 Volume & Institutional Action

Volume is above 1-week average — decent trader interest.

FII holding ticked up (+0.27%) — a minor positive.

DII hold dipped slightly (−0.32%) — not a major concern.

🎯 Optimal Entry Price

Entry Zone: ₹285–₹295

Look for signs of RSI moving toward 45+ and MACD flattening for a trend reversal.

A bounce near ₹285 (close to recent low) may offer decent upside risk-reward.

🧭 Exit Strategy (If Already Holding)

Target Range: ₹310–₹320

Just above the 200 DMA — likely resistance zone.

Stop-Loss: ₹275

Protects capital below previous swing low.

Petronet isn’t in full swing mode yet but looks like a value pick showing early signs of accumulation. You might want to track it for a reversal setup. Want to compare it with another energy stock to see which one’s got more momentum juice? I’m game. 🔍📊

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