POLYCAB - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.3

📊 Swing Trade Analysis: Polycab India Ltd (POLYCAB)

Polycab presents a strong swing trade setup, backed by excellent fundamentals, bullish technical indicators, and institutional support. While slightly overbought, it remains a compelling candidate for short-term momentum trades.

✅ Strengths

Fundamental Excellence

ROCE: 29.7% and ROE: 21.4% → High capital efficiency.

EPS: ₹145 and PAT Qtr: ₹568 Cr. → Strong earnings.

Debt-to-Equity: 0.01 → Virtually debt-free.

PEG Ratio: 1.58 → Reasonably priced for growth.

Technical Momentum

MACD: 113 → Strong bullish momentum.

RSI: 68.8 → Approaching overbought, but still trending.

Price above DMA50 (₹6,982) and DMA200 (₹6,432) → Clear uptrend.

Institutional Confidence

FII Holding ↑ 0.34%, DII Holding ↑ 0.66% → Solid accumulation.

52-Week Strength

Up 94.8% from low of ₹4,555 → Strong price performance.

⚠️ Risks

Valuation

P/E: 51.4 vs Industry PE: 29.1 → Premium valuation.

Dividend Yield: 0.47% → Low passive income.

Profit Decline

PAT dropped from ₹731 Cr. to ₹568 Cr. → Needs monitoring.

Volume Dip

Current volume (1.89L) < 1-week average (2.15L) → Slight cooling off.

🎯 Optimal Entry Price

Buy Zone: ₹7,000–₹7,100

Near DMA50, offering a better risk-reward entry if price pulls back.

🚪 Exit Strategy (If Holding)

Target Exit: ₹7,550–₹7,600

Near recent high and psychological resistance.

Stop Loss: ₹6,850

Below DMA50 to protect against reversal.

This setup suits momentum-driven swing traders who can monitor RSI and MACD for continuation or reversal signals. Let me know if you'd like help setting alerts or visualizing this trade.

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