SHRIRAMFIN - Swing Trade Analysis

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

Swing Trade Rating: 3.6

📊 Analysis Summary

SHRIRAMFIN (Shriram Finance) offers a moderately attractive swing trade setup with solid fundamentals and a decent valuation. However, short-term technical indicators suggest weak momentum, and the stock is currently trading below its 50 DMA, which tempers the bullish outlook.

✅ Strengths

Reasonable Valuation: P/E of 14.1 vs industry average of 25.2 — undervalued.

Strong EPS (₹51.5): Indicates consistent profitability.

High ROE (15.6%): Efficient use of equity capital.

Stable PAT: ₹2,159 Cr. vs ₹2,144 Cr. — consistent earnings.

PEG Ratio (0.32): Attractive growth-adjusted valuation.

Above 200 DMA (₹626): Long-term trend remains intact.

DII Buying (+0.98%): Domestic institutions showing confidence.

⚠️ Weaknesses

MACD Negative (-10.5): Bearish momentum signal.

RSI at 43.5: Weak momentum, not yet oversold.

Trading Below 50 DMA (₹659): Short-term trend is down.

High Debt-to-Equity (4.15): Typical for NBFCs, but adds risk.

FII Selling (-0.97%): Foreign investors reducing exposure.

Volume Below Average: Current volume (70.7 lakh) is lower than 1-week average (98.6 lakh) — waning interest.

📈 Optimal Entry Price

Buy Zone: ₹625–₹635 Near 200 DMA and current price — offers support and low-risk entry.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹675–₹690 Near 50 DMA and short-term resistance zone.

Stop Loss: ₹610 Below recent support and 200 DMA — exit if trend weakens.

🧠 Final Thoughts

SHRIRAMFIN is a value-driven swing trade with solid fundamentals, but technical indicators suggest caution. It’s best suited for traders who prefer low-risk entries near support and are willing to wait for momentum to build. Watch for MACD crossover and RSI improvement to confirm upside potential.

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