SCHAEFFLER - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.5

📊 Swing Trade Analysis for SCHAEFFLER

SCHAEFFLER is a strong candidate for swing trading, supported by bullish technical indicators and solid fundamentals.

✅ Strengths

Momentum Confirmation: RSI at 65.8 and MACD at 25.3 indicate strong bullish momentum.

Trend Alignment: Price is well above both 50 DMA (₹3,974) and 200 DMA (₹3,795), confirming an uptrend.

Excellent Fundamentals: ROCE of 25.7% and ROE of 19.2% reflect efficient capital use.

Earnings Growth: PAT increased from ₹265 Cr. to ₹296 Cr., showing consistent profitability.

Low Leverage: Debt-to-equity ratio of 0.01 adds financial stability.

EPS Strength: ₹67.7 EPS supports valuation despite high P/E.

⚠️ Weaknesses

High Valuation: P/E of 61.2 vs industry average of 29.1 and PEG of 3.87 suggest premium pricing.

Flat Volume: Current volume is only slightly above the weekly average, indicating steady but not explosive interest.

Minor DII Pullback: Slight decline in DII holdings (-0.06%) may reflect cautious domestic sentiment.

🎯 Optimal Entry Price

Entry Zone: ₹4,000–₹4,050

A minor pullback near the 50 DMA offers a lower-risk entry with trend support.

🚪 Exit Strategy (If Already Holding)

Target Exit: ₹4,300–₹4,350

Just below the recent high of ₹4,375, where resistance may emerge.

Stop-Loss: ₹3,950

Below the 50 DMA to protect against trend reversal.

🧠 Final Thought

SCHAEFFLER is a high-quality swing trade candidate with strong momentum and fundamentals. While valuation is rich, the technical setup supports a short-term bullish move. Ideal for traders seeking trend continuation with disciplined risk management.

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