RECLTD - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.0

📊 Swing Trade Analysis: REC Ltd (RECLTD)

REC Ltd presents a value-driven swing trade opportunity, supported by strong earnings, attractive valuation, and technical support. While momentum indicators are neutral and leverage is high, the stock’s fundamentals and dividend yield make it appealing for short-term tactical trades.

✅ Strengths

Valuation & Profitability

P/E: 6.05 vs Industry PE: 25.3 → Deeply undervalued.

PEG Ratio: 0.37 → Strong growth at a low price.

EPS: ₹63.5 and PAT Qtr: ₹4,451 Cr. → Robust earnings.

ROE: 21.5% → Excellent shareholder returns.

Dividend Yield: 4.68% → Attractive for income-seeking traders.

Technical Support

Current price ₹384 is near DMA50 (₹382), offering a potential bounce zone.

Volume: 57.35L > 1-week average → Strong market interest.

RSI: 58.7 → Neutral to bullish zone.

DII Holding ↑ 0.72% → Domestic institutional support.

⚠️ Risks

MACD: -0.37 → Slight bearish crossover, signaling weak momentum.

Price Below DMA200 (₹418) → Long-term trend still under pressure.

FII Holding ↓ 1.32% → Foreign investors trimming exposure.

Debt-to-Equity: 6.39 → High leverage typical of NBFCs.

ROCE: 9.92% → Moderate capital efficiency.

🎯 Optimal Entry Price

Buy Zone: ₹375–₹380

Slightly below current price and near DMA50, offering a safer entry.

🚪 Exit Strategy (If Holding)

Target Exit: ₹410–₹420

Near DMA200 and short-term resistance.

Stop Loss: ₹365

Below recent support to manage downside risk.

This setup suits value-focused swing traders who can monitor momentum indicators and exit on strength. Let me know if you'd like help tracking MACD or RSI signals for timing your entry.

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