SAIL - Swing Trade Analysis

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

Swing Trade Rating: 2.4

📊 Analysis Summary

SAIL (Steel Authority of India Ltd.) is currently showing weak technical momentum despite some institutional buying and a recent earnings rebound. The stock is trading below its 50 DMA and has a low RSI, indicating bearish sentiment. While it may offer a value-based entry, it’s not ideal for a momentum-driven swing trade at this stage.

✅ Strengths

Book Value (₹143) > Current Price (₹126): Trading at a discount to book.

DII & FII Buying: +1.55% and +0.44% — institutional confidence.

Quarterly Profit Surge (+97.4%): Strong rebound in earnings.

EPS of ₹7.35: Reasonable for its price.

Debt-to-Equity (0.63): Manageable for a capital-intensive sector.

⚠️ Weaknesses

RSI at 36.8: Weak momentum, nearing oversold.

MACD Negative (-0.24): Bearish crossover.

Trading Below 50 DMA (₹130): Short-term downtrend.

ROCE (6.72%) and ROE (4.48%): Poor capital and equity efficiency.

Volume Below Average: Current volume (1.52 Cr.) vs 1-week average (1.74 Cr.) — declining interest.

PEG Ratio (-0.42): Indicates earnings volatility or contraction.

P/E (17.1) < Industry PE (22.4): Slight undervaluation, but not compelling.

Price Near 200 DMA (₹123): May act as support, but trend is weak.

📈 Optimal Entry Price

Buy Zone: ₹120–₹124 Near 200 DMA and recent support — enter only if RSI stabilizes or MACD turns positive.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹135–₹140 Near 50 DMA and short-term resistance.

Stop Loss: ₹118 Below 200 DMA — exit if bearish momentum continues.

🧠 Final Thoughts

SAIL is a value-driven but technically weak swing trade candidate. Traders should be cautious and wait for momentum confirmation before entering. It’s better suited for longer-term accumulation than short-term swing trading unless technicals improve.

Want to explore other metal stocks with stronger setups like Tata Steel or JSW Steel?

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