SBICARD - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.9

📈 Positive

• 📊 Price is above DMA 200 (₹858), indicating long-term support and trend stability.
• 📈 MACD at 1.32 suggests early bullish crossover potential.
• 📈 EPS of ₹20.2 and ROE of 14.8% reflect solid profitability.
• 📈 Volume (18.2 lakh) is above 1-week average (12.3 lakh), showing increased market interest.
• 📈 DII holding increased by 0.26%, signaling growing domestic institutional confidence.

⚠️ Limitation

• 📉 RSI at 42.4 indicates weak momentum, close to oversold territory.
• 📉 Price is slightly below DMA 50 (₹888), suggesting short-term resistance.
• 📉 P/E of 43.7 vs industry P/E of 22.6 signals overvaluation.
• 📉 PEG ratio of 7.50 implies expensive valuation relative to growth.
• 📉 Debt-to-equity ratio of 3.33 is high, indicating leveraged operations.
• 📉 PAT declined from ₹556 Cr. to ₹445 Cr., showing earnings pressure.
• 📉 FII holding declined by 0.13%, reflecting cautious foreign sentiment.

🚫 Company Negative News

• 📉 Analysts have flagged concerns over rising credit costs and margin compression in the unsecured lending segment.

✅ Company Positive News

• 💳 SBICARD continues to benefit from strong consumer spending and digital payment adoption.
• 📈 Stable asset quality and expanding customer base support long-term growth visibility.

🏦 Industry

• 🏦 Operates in the credit card and consumer finance sector, which is cyclical but benefits from rising digital transactions and urban consumption.
• 📊 Industry P/E of 22.6 reflects moderate valuation and growth expectations.

🧾 Conclusion

• 📉 SBICARD is fundamentally strong but faces valuation and short-term technical resistance, making it a cautious swing trade candidate.
• 📍 Optimal entry: ₹875–₹880 (near support and below DMA 50).
• 🚪 Exit if held: ₹910–₹920 (near resistance and recent swing high) unless momentum strengthens.
• ⚠️ Suitable for swing trading with moderate risk and close monitoring of RSI and debt metrics.

I can also compare SBICARD’s swing setup with peers like HDFC Bank or Bajaj Finance to help you spot stronger short-term opportunities.