PRAJIND - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 2.8

📉 Swing Trade Analysis: Praj Industries Ltd (PRAJIND)

PRAJIND currently shows weak technical momentum and deteriorating earnings, making it a high-risk swing trade. While the company has strong long-term fundamentals, short-term indicators suggest caution.

⚠️ Weaknesses

Technical Breakdown

RSI: 35.9 → Approaching oversold, but no reversal signal yet.

MACD: -12.8 → Strong bearish momentum.

Price below both DMA50 (₹430) and DMA200 (₹520) → Clear downtrend.

Earnings Decline

PAT dropped from ₹59 Cr. to ₹20 Cr. → -71.3% quarterly variation.

EPS: ₹10.5 → Weak earnings relative to price.

Institutional Sentiment

FII Holding ↓ 0.30%, DII Holding ↓ 2.08% → Significant pullback from major investors.

Volume Drop

Current volume (6.09L) < 1-week average (6.93L) → Waning interest.

✅ Positives

Strong Fundamentals

ROCE: 23.6% and ROE: 18.2% → Good capital efficiency.

Debt-to-Equity: 0.03 → Virtually debt-free.

Dividend Yield: 1.53% → Decent income potential.

Valuation

P/E: 37.4 vs Industry PE: 37.5 → Fairly valued.

PEG Ratio: 2.49 → Slightly expensive for growth.

🎯 Optimal Entry Price

Buy Zone: ₹375–₹385

Near 52-week low and oversold territory. Wait for MACD reversal or RSI uptick before entering.

🚪 Exit Strategy (If Holding)

Target Exit: ₹430–₹450

Near DMA50 and resistance zone.

Stop Loss: ₹370

Below recent support to manage downside risk.

This setup suits contrarian traders who can monitor for a technical reversal and act quickly. Let me know if you'd like help tracking MACD or RSI signals for timing your entry.

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