RRKABEL - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.6

📊 Swing Trade Analysis: RR Kabel Ltd (RRKABEL)

RRKABEL presents a moderately favorable swing trade setup, with solid fundamentals and institutional interest, but weak short-term momentum and elevated valuation. It suits traders who are looking for a technical bounce near support levels and can manage risk actively.

✅ Strengths

Fundamental Stability

ROCE: 19.7% and ROE: 15.2% → Strong capital efficiency.

EPS: ₹29.6 → Healthy earnings.

Debt-to-Equity: 0.14 → Low leverage.

Qtr Profit Var: +38.9% → Positive earnings momentum.

Valuation Context

P/E: 42.4 vs Industry PE: 29.1 → Slightly overvalued, but justified by growth.

PEG Ratio: 3.12 → Indicates premium pricing for growth.

Institutional Activity

FII Holding ↑ 1.40% → Strong foreign investor interest.

Volume Strength

Current volume (1.01L) > 1-week average → Growing interest.

⚠️ Weaknesses

Technical Indicators

MACD: -6.07 → Bearish crossover, signaling weak momentum.

RSI: 52.4 → Neutral zone, lacking conviction.

Price below both DMA50 (₹1,260) and DMA200 (₹1,292) → Short-term downtrend.

Profit Decline

PAT dropped from ₹128 Cr. to ₹88.8 Cr. → Needs monitoring.

DII Holding ↓ 1.13% → Domestic institutions trimming exposure.

🎯 Optimal Entry Price

Buy Zone: ₹1,220–₹1,240

Slightly below current price and near support levels for better risk-reward.

🚪 Exit Strategy (If Holding)

Target Exit: ₹1,300–₹1,340

Near DMA200 and short-term resistance.

Stop Loss: ₹1,190

Below recent support to manage downside risk.

This setup suits technically aware 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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