POWERGRID - Swing Trade Analysis

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

📊 Swing Trade Analysis: Power Grid Corporation of India Ltd. (POWERGRID)

Swing Trade Rating: 3.3

⚖️ What’s Working & What’s Not

Technical Setup

RSI at 45.2: Neutral zone — not oversold, but not showing upward momentum either.

MACD near flat (-0.11): Signals indecision and a lack of strong directional bias.

Current Price (₹293) is just below DMA 50 (₹295) and DMA 200 (₹297) — hovering in a consolidation band.

Volume

Volume is close to average, suggesting no sudden surge in trading interest.

📉 Fundamentals & Valuation

Steady Profitability

ROCE at 12.9% and ROE at 17.3% are moderate — consistent with utility sector norms.

PAT shows a slight uptick quarter-over-quarter (₹4,143 Cr. vs ₹3,862 Cr.) — stable earnings.

Dividend Appeal

Yield of 3.84% makes it attractive for passive income seekers.

Valuation Signals

P/E of 17.6 matches industry average — fair valuation.

PEG Ratio of 5.32 — quite high, indicating slower growth prospects vs current price levels.

Risk Profile

Debt-to-equity ratio of 1.41 — moderate for a capital-intensive power utility.

Institutional movement is limited — minor FII outflow and small DII inflow.

🎯 Optimal Entry Price

₹288–₹291

This range is near recent support levels and offers a safer entry if RSI starts climbing and MACD turns positive.

Look for confirmation candles above ₹295 to validate momentum.

🧭 Exit Strategy (If Already Holding)

Target Range: ₹310–₹315

Conservative swing target based on previous bounces and technical resistance.

Stop-Loss: ₹282

Below near-term support and low-volume shelf — protects against sharper downside.

💡 Final Thought

POWERGRID isn’t electric with momentum right now, but it's quietly stable. It could offer a slow, steady swing if broader sentiment improves or if it gets technical lift-off from ₹295. Not a high-voltage breakout play, but worth watching for low-risk accumulation.

Want help mapping out comparative setups across utilities or identifying better momentum movers? Just flip the switch and I’ll light the way ⚡📈

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