RENUKA - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 2.6

📉 Current Price: ₹29.2

📊 Optimal Entry Price: ₹27–28 (near recent support and oversold zone)

📈 Suggested Exit (if holding): ₹33–35 (near 200 DMA resistance)

🔷 Positive

• 📉 RSI at 41.2: Near oversold zone, potential for technical bounce
• 📈 FII Buying: Foreign institutional holding increased by 0.12%
• 📊 Volume Support: Decent trading activity with over 26L shares traded

⚠️ Limitation

• 📉 Negative Book Value: -₹1.83 indicates accumulated losses and weak balance sheet
• 📉 MACD Negative: -0.27 signals bearish momentum
• 📉 Below DMA Levels: Price trading below both 50 DMA (₹30.2) and 200 DMA (₹32.6)
• 📉 EPS Negative: -₹1.58 reflects poor profitability
• 📉 ROCE Weak: 9.99% is below ideal levels for capital efficiency

🚫 Company Negative News

• 📉 Quarterly Loss: PAT dropped from ₹54.4 Cr to ₹-215 Cr QoQ
• 📉 DII Selling: Domestic institutional holding declined by 0.05%

✅ Company Positive News

• 🌱 Ethanol Expansion: Company continues to invest in ethanol capacity, aligning with green energy goals
• 📈 Sugar Sector Tailwinds: Government support for ethanol blending and exports may aid recovery

🏭 Industry

• 🍬 Sugar Sector Outlook: Volatile due to global price swings and regulatory changes
• 📉 Valuation Pressure: Industry PE at 14.8, but RENUKA lacks earnings to justify valuation

🧾 Conclusion

RENUKA is a weak swing trade candidate due to poor financials, technical weakness, and recent losses. While ethanol expansion and FII interest offer some hope, the stock remains risky. Entry near ₹27–28 may offer a short-term bounce, but exit near ₹33–35 is advisable if already holding. Monitor sector news and volume trends before initiating trades.

I can chart RENUKA’s price action with support and resistance zones to help you time your trade more precisely.