SAIL - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.8

📉 Current Price: ₹138

📊 Optimal Entry Price: ₹132–135 (near 50 DMA support)

📈 Suggested Exit (if holding): ₹142–143 (near 52-week high resistance)

🔷 Positive

• 📈 MACD Positive: 1.56 indicates bullish momentum
• 📈 Above DMA Levels: Price trading above both 50 DMA (₹132) and 200 DMA (₹126)
• 📉 Reasonable Valuation: P/E of 21.6 is close to industry average (22.1)
• 📈 Institutional Buying: DII holding increased by 0.80%, FII by 0.11%
• 📊 Volume Strength: High trading activity with over 3.28 Cr shares traded

⚠️ Limitation

• 📉 Weak ROCE & ROE: ROCE at 6.73% and ROE at 4.38% are below ideal levels
• 📉 Negative PEG Ratio: -0.51 implies poor earnings growth relative to valuation
• 📉 RSI at 60.7: Approaching overbought zone, limiting upside potential
• 📉 Below Avg Volume: Current volume below 1-week average (5.47 Cr)

🚫 Company Negative News

• 📉 Quarterly PAT Decline: Profit dropped from ₹685 Cr to ₹645 Cr (down 22.6%)

✅ Company Positive News

• 🏗️ Capacity Expansion: Ongoing modernization and expansion of steel plants
• 📈 EPS Strength: ₹5.85 supports valuation
• 📊 Dividend Yield: 1.16% adds to investor appeal

🏭 Industry

• 🏢 Steel Sector: Supported by infrastructure demand and global recovery
• 📉 Valuation Pressure: Sector trading near peak multiples amid cyclical volatility

🧾 Conclusion

SAIL offers a moderate swing trade setup with technical strength and institutional support. While earnings growth and capital efficiency are weak, the stock is trading above key moving averages and near its 52-week high. Entry near ₹132–135 is ideal, with exit near ₹142–143. Monitor RSI and volume trends before initiating new trades.

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