RCF - Swing Trade Analysis

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

Swing Trade Rating: 2.5

📉 Technical Snapshot

Price near DMA 50 & 200 (both ₹153): Indicates sideways movement; no bullish strength yet.

RSI at 45.9: Below neutral threshold — weak momentum.

MACD at −0.57: Bearish crossover, not supportive of a rebound.

Volume is below average: Traders are cautious or disengaged.

📊 Fundamental Overview

Valuation

P/E of 35.1 > Industry PE (26.1): Overvalued relative to peers.

PEG Ratio −1.33: Negative, meaning poor growth doesn't justify price.

Profitability

ROCE: 7.50%, ROE: 5.12% — subpar efficiency metrics.

EPS of ₹4.39: Doesn’t support the elevated price.

PAT Decline: ₹80.2 Cr → ₹69.7 Cr — down 17.1% QoQ.

Institutional Sentiment

FII down (−0.18%), DII almost flat (+0.01%) — muted conviction from large investors.

Leverage

Debt-to-equity of 0.58: Acceptable for capital-intensive sectors.

🎯 Optimal Entry Price

₹140–₹145

Closer to recent swing support (~₹108) for improved risk-reward.

Wait for RSI crossing 50 and MACD turning positive before entry.

🚪 Exit Strategy (If Holding)

Target Range: ₹165–₹170

Matches short-term resistance zone.

Stop-Loss: ₹138

Below recent base levels — conservative protection.

RCF is currently not ideal for swing trading due to weak momentum and valuation pressure. Fundamentals don’t support aggressive positioning. Best to wait for technical strength or shift focus toward chemical sector peers showing clearer bullish signals. I can line up a few if you’d like to weigh options. 💼📈

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