SARDAEN - Swing Trade Analysis

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

Swing Trade Rating: 4.1

📊 Analysis Summary

SARDAEN presents a technically stable and fundamentally sound swing trade setup. While not in breakout territory, the stock is trading near key support levels with improving volume and decent profitability metrics. It’s suitable for a moderate-risk swing trade aiming for a short-term rebound.

✅ Strengths

MACD Positive (0.08): Early bullish crossover — momentum may be building.

RSI at 52.4: Neutral zone — room for upside without being overbought.

Trading at 50 DMA (₹446) and above 200 DMA (₹435)**: Indicates trend support.

ROCE (15.6%) & ROE (13.8%): Strong operational and equity returns.

P/E (22.5) ≈ Industry PE (22.4): Fairly valued.

EPS (₹19.9): Solid earnings base.

Volume Above Average: Current volume (2.57 lakh) exceeds 1-week average — rising interest.

Low Debt-to-Equity (0.46): Financially stable.

⚠️ Weaknesses

Declining PAT: ₹101 Cr. vs ₹197 Cr. — earnings contraction.

Negative PEG Ratio (-4.92): Indicates weak growth expectations.

Modest Institutional Activity: FII (+0.37%) and DII (+0.02%) changes are minimal.

Far from 52-week High (₹566): Recovery phase — not yet in breakout mode.

📈 Optimal Entry Price

Buy Zone: ₹440–₹446 Near 50 DMA and current price — ideal for low-risk entry with trend support.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹470–₹480 Short-term resistance zone and potential swing target.

Stop Loss: ₹430 Below 200 DMA — exit if trend weakens.

🧠 Final Thoughts

SARDAEN is a technically aligned swing candidate with solid fundamentals and trend support. While not explosive, it offers a steady setup for traders seeking a short-term move with controlled risk. Watch for volume confirmation and price action near ₹450.

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