SBICARD - Swing Trade Analysis

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

Swing Trade Rating: 2.6

📉 Technical & Momentum Analysis

Current Price (₹804) is below both 50-DMA (₹900) and 200-DMA (₹849) — bearish trend.

RSI (22.6): Deeply oversold — potential for a short-term bounce, but no confirmation yet.

MACD (-31.7): Strongly negative — momentum remains weak.

Volume: Significantly below weekly average — lack of buying interest.

📊 Fundamental Overview

P/E (40.7) vs Industry PE (24.5): Overvalued — premium pricing not supported by recent performance.

PEG Ratio (6.98): Very high — growth doesn’t justify valuation.

ROCE (10.4%) & ROE (14.8%): Moderate — not compelling for swing trades.

EPS (₹19.7): Reasonable, but not enough to offset valuation concerns.

Dividend Yield (0.31%): Minimal — not attractive for income seekers.

Debt to Equity (3.26): High — typical for financial services, but adds risk.

Quarterly Profit Decline (-6.47%): Weakening performance.

Institutional Activity: FII (+0.35%) and DII (+0.28%) increased holdings — mild positive sentiment.

⚖️ Swing Trade Suitability

Why It’s a Weak Candidate Right Now

Technical indicators are bearish with no signs of reversal.

Valuation is stretched and momentum is lacking.

Fundamentals are stable but not strong enough to support a swing setup.

What Could Improve It

RSI rising above 35 and MACD turning positive.

Price reclaiming 200-DMA with volume confirmation.

🎯 Optimal Entry Price

Entry Zone: ₹770–₹780 — near support and oversold RSI. Only enter if reversal signals appear (e.g., bullish MACD crossover or RSI > 35).

🚪 Exit Strategy

If Holding: Consider exiting near ₹880–₹900 — resistance zone around 50-DMA.

Stop Loss: ₹760 — below recent support to manage downside risk.

SBICARD is currently in a technical downtrend with weak momentum and stretched valuation. It’s not ideal for swing trading at this moment, but worth watching for a reversal setup if volume and RSI improve.

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