SBILIFE - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 3.7

📊 Swing Trade Analysis: SBI Life Insurance Company Ltd (SBILIFE)

SBILIFE presents a technically stable and fundamentally sound swing trade setup. While momentum indicators are neutral and valuation is stretched, the stock’s proximity to support levels and strong institutional interest make it a viable short-term candidate for tactical trading.

✅ Strengths

Fundamental Quality

ROCE: 16.9% and ROE: 15.1% → Strong capital efficiency.

EPS: ₹24.8 and PAT Qtr: ₹594 Cr. → Solid earnings base.

Debt-to-Equity: 0.00 → Debt-free balance sheet.

Qtr Profit Var: +14.4% → Positive earnings growth.

Valuation Context

P/E: 73.4 vs Industry PE: 73.5 → Fairly valued within sector.

PEG Ratio: 4.31 → Slightly expensive relative to growth.

Technical Positioning

Current price ₹1,822 is near DMA50 (₹1,817) and above DMA200 (₹1,708) → Consolidation zone with upward bias.

RSI: 50.2 → Neutral zone, with room to rise.

Institutional Sentiment

FII Holding ↑ 0.46% → Foreign investor accumulation.

⚠️ Weaknesses

Momentum Weakness

MACD: -4.00 → Bearish crossover, signaling weak momentum.

Volume (8.24L) > 1-week average (6.11L) → Mild interest, but not surging.

Valuation Stretch

Trading at 10× book value (₹178) → Premium pricing.

Dividend Yield: 0.15% → Minimal passive income.

DII Holding ↓ 0.43% → Domestic institutions trimming exposure.

🎯 Optimal Entry Price

Buy Zone: ₹1,790–₹1,810

Slight pullback from current price, near DMA50 for better risk-reward.

🚪 Exit Strategy (If Holding)

Target Exit: ₹1,880–₹1,900

Near recent resistance and swing potential.

Stop Loss: ₹1,760

Below DMA200 to manage downside risk.

This setup suits technically disciplined swing traders who can monitor MACD and RSI for confirmation and exit on strength. Let me know if you'd like help tracking this setup or setting alerts.

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