POONAWALLA - Swing Trade Analysis

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

📊 Swing Trade Analysis: Poonawalla Fincorp Ltd. (POONAWALLA)

Swing Trade Rating: 2.5

⚠️ Caution: Mixed Signals for Swing Trading

Technical Weakness

RSI at 35.0 suggests oversold territory, but not decisively turning around — no clear bullish momentum yet.

MACD is negative (-3.53) — confirms downward pressure and lack of upward swing potential.

Current price (₹416) is below the 50 DMA (₹430) and just above the 200 DMA (₹388) — indicating uncertainty and potential consolidation.

Volume Drop

Current volume lower than 1-week average — suggests reduced trading interest and weak follow-through.

📉 Fundamental Concerns

Low Profitability

ROCE at 4.77% and ROE at -1.28% — raises red flags on capital efficiency and return on equity.

EPS of -₹4.21 further highlights weak earnings.

High Leverage

Debt-to-equity at 3.19 — signals significant financial risk and reduced flexibility.

Profit Variability

Qtr profit change of -78.5% points to instability in performance.

🧭 Entry & Exit Strategy

Entry Price: Only consider entering if price drops toward ₹390–₹395, and RSI starts climbing above 40 with MACD turning positive — otherwise, patience is key.

Exit (If Already Holding)

Target Zone: ₹435–₹445 if there's a short-term bounce.

Stop-Loss: ₹395 — below this could signal breakdown past 200 DMA.

🧠 Final Thought

Poonawalla Fincorp seems to be in a technical and fundamental lull, with earnings headwinds and limited momentum. It’s not the strongest swing setup at this stage — better opportunities may lie elsewhere unless a clear reversal pattern emerges. Want help scanning for cleaner swing setups? I can pull up more promising candidates.

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