RKFORGE - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 2.9

📉 Swing Trade Analysis: Ramkrishna Forgings Ltd (RKFORGE)

RKFORGE currently shows weak technical momentum and deteriorating earnings, making it a high-risk swing trade. While the company has decent long-term fundamentals and is trading near support, the recent breakdown in price and profit warrants caution.

✅ Positives

Valuation & Fundamentals

P/E: 30.2 vs Industry PE: 29.1 → Fairly valued.

EPS: ₹23.6 → Strong earnings base.

Debt-to-Equity: 0.55 → Moderate leverage.

Book Value: ₹166 → Reasonable asset backing.

Volume Strength

Current volume (4.19L) > 1-week average (3.39L) → Mild uptick in interest.

⚠️ Weaknesses

Technical Breakdown

RSI: 46.7 → Neutral to weak zone.

MACD: -3.52 → Bearish crossover.

Price below both DMA50 (₹594) and DMA200 (₹681) → Clear downtrend.

Earnings Collapse

PAT dropped from ₹208 Cr. to ₹21.5 Cr. → -89.7% sequential decline.

Qtr Profit Var: -49.4% → Sharp contraction.

Institutional Sentiment

FII Holding ↓ 0.03%, DII Holding ↓ 2.40% → Pullback from major investors.

Low Dividend Yield: 0.35% → Minimal passive income.

PEG Ratio: 2.15 → Slightly expensive for growth.

🎯 Optimal Entry Price

Buy Zone: ₹560–₹570

Near recent support and just above 52-week low. Entry should be timed with MACD reversal or RSI uptick.

🚪 Exit Strategy (If Holding)

Target Exit: ₹610–₹630

Near DMA50 and short-term resistance.

Stop Loss: ₹545

Below recent support to manage downside risk.

This setup suits contrarian swing traders who can monitor for a technical reversal and act quickly. Let me know if you'd like help tracking MACD or RSI signals for timing your entry.

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