RITES - Swing Trade Analysis

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

📊 Swing Trade Analysis: RITES Ltd. (RITES)

Swing Trade Rating: 2.4

⚙️ Technical Overview

Current Price: ₹263 is below both DMA 50 (₹273) and DMA 200 (₹271) — signals downward pressure.

RSI: 31.8 — indicates oversold zone, but not yet showing reversal strength.

MACD: −3.61 — bearish crossover, suggesting weak momentum.

Volume is below average — limited trading interest, not ideal for short-term swings.

🧾 Fundamental Snapshot

Valuation & Profitability

P/E of 32.8 vs. industry P/E of 23.8 — mildly overvalued.

PEG Ratio of −3.55 — not favorable, indicates earnings weakness.

ROCE at 20.8% and ROE at 14.7% — solid efficiency, supportive of long-term quality.

PAT rose to ₹133 Cr. from ₹100 Cr. — moderate improvement.

Dividend Yield: 4.38% — attractive for passive income.

Debt Profile

Zero debt — excellent financial health and flexibility.

Institutional Sentiment

Flat FII (+0.14%) and DII (−0.02%) movement — neutral stance.

🎯 Optimal Entry Zone

Buy Between ₹250–₹255

Entry near support levels aligns with potential rebound.

Watch for RSI >38 and MACD flattening to confirm reversal setup.

🚪 Exit Strategy (If Already Holding)

Profit Booking Target: ₹280–₹285

Limited upside unless broader technical recovery unfolds.

Stop-Loss: ₹248

Protects capital below support and oversold territory.

RITES may not be ripe for a swing trade right now, but it's definitely not a weak business. Strong returns, zero debt, and decent dividends make it better suited for a longer-term accumulation strategy than a momentum play. If you'd like, I can run a screen for industrial sector stocks showing breakout signals. 🚦📉

Edit in a page