RECLTD - Swing Trade Analysis

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

📊 Swing Trade Analysis: REC Ltd. (RECLTD)

Swing Trade Rating: 3.1

🧮 Quick Technical & Price Action Check

Price: ₹400, trading just below the 50 DMA (₹402) and far below 200 DMA (₹435) — signals weak momentum.

RSI at 50.7 — neutral zone, no directional clarity.

MACD negative — bearish crossover, short-term weakness.

Volume well below 1-week avg — waning interest among traders.

💼 Fundamentals Overview

Valuation

P/E of 6.24 vs. industry average of 24.6 — deeply undervalued.

PEG Ratio of 0.38 — indicates strong earnings growth potential at low valuation.

Profitability

ROE of 21.5% — excellent; reflects strong return for equity holders.

PAT jumped from ₹4,310 Cr. to ₹4,466 Cr. — healthy growth.

EPS at ₹64.1 — solid earnings power.

Dividend Yield: 4.50% — attractive for passive income seekers.

Institutional Flow

FII down −1.32%, DII marginally up — slightly cautious sentiment from foreign investors.

🎯 Optimal Entry Strategy

Ideal Buy Zone: ₹390–₹395

Entry at support levels near 52-week low (₹357) offers risk-adjusted positioning.

Look for RSI moving past 55 and MACD turning positive.

🚪 Exit Strategy (If Already Holding)

Profit Booking Zone: ₹430–₹440

Near 200 DMA and resistance levels.

Stop-Loss: ₹385

Protects capital just below swing lows.

RECLTD is fundamentally strong but currently lacks technical momentum for a high-conviction swing trade. Its low valuation, high ROE, and strong dividend make it appealing for positional holds, though not an immediate breakout candidate. If you're more inclined toward high-momentum plays, I can help you spot better setups in the same financial sector 📈🔥.

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