RENUKA - Swing Trade Analysis

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

Swing Trade Rating: 2.4

📊 Analysis Summary

RENUKA (Shree Renuka Sugars) shows signs of a short-term technical weakness despite a sharp turnaround in profitability. The stock is currently in a downtrend, trading below key moving averages, and lacks strong institutional support. While the recent PAT swing is impressive, the broader setup is not favorable for swing trading at this stage.

✅ Strengths

Quarterly PAT Turnaround: ₹91.6 Cr. vs -₹204 Cr. — strong recovery.

High Volume: Current volume (23.5 lakh) exceeds 1-week average — active trading interest.

ROCE at 10.5%: Decent capital efficiency.

Recent Low of ₹24.7: Offers a reference point for support.

⚠️ Weaknesses

Trading Below 50 DMA (₹32.0) and 200 DMA (₹34.9): Clear downtrend.

RSI at 37.3: Weak momentum, approaching oversold but not yet reversing.

MACD Negative (-0.48): Bearish signal.

EPS Negative (-₹1.41): Indicates net losses over trailing period.

Book Value Negative (-₹7.87): Financial stress or accumulated losses.

No Dividend Yield: No income cushion.

FII Selling (-0.09%): Weak institutional sentiment.

52w Index at 18.9%: Far below yearly high — poor relative strength.

📈 Optimal Entry Price

Wait for Reversal Confirmation: ₹28.0–₹29.0 Only consider entry if RSI improves and MACD turns positive. Otherwise, risk remains high.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹32.5–₹34.0 Near 50 DMA and 200 DMA — likely resistance zone.

Stop Loss: ₹27.0 Below recent support — exit if weakness persists.

🧠 Final Thoughts

RENUKA is currently not a strong swing trade candidate due to technical weakness and poor financial metrics. While the recent profit turnaround is encouraging, the stock needs to stabilize above key moving averages and show momentum signals before becoming viable for swing trading.

Would you like to explore sugar sector stocks with stronger technical setups and better valuations?

Edit in a page