SHYAMMETL - Swing Trade Analysis

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

Swing Trade Rating: 4.4

📊 Analysis Summary

SHYAMMETL (Shyam Metalics) is showing strong bullish momentum and is trading near its 52-week high, supported by solid fundamentals and technical indicators. While the RSI suggests it's approaching overbought territory, the stock remains a high-conviction swing trade candidate with potential for a breakout.

✅ Strengths

Strong Momentum: RSI at 75.0 and MACD at 28.1 — clear bullish signals.

Trading Above 50 DMA (₹887) and 200 DMA (₹828): Strong uptrend.

Low Debt-to-Equity (0.07): Financially sound.

EPS of ₹33.1: Solid earnings base.

Consistent PAT Growth: ₹291 Cr. vs ₹219 Cr.

DII Buying (+1.05%): Institutional support from domestic investors.

Near 52-week High (₹1,000): Strong relative strength (97.9%).

⚠️ Weaknesses

High RSI (75.0): Overbought zone — risk of short-term pullback.

P/E of 30.1 vs Industry PE of 23.8: Slightly overvalued.

Negative PEG Ratio (-1.56): Growth concerns relative to valuation.

FII Selling (-0.54%): Foreign investors trimming exposure.

Volume Below Average: Current volume (8.2 lakh) is lower than 1-week average (12.3 lakh) — needs confirmation.

📈 Optimal Entry Price

Buy on Dip: ₹950–₹970 Wait for minor pullback to reduce entry risk, especially with RSI in overbought zone.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹1,050–₹1,080 Short-term breakout target above 52-week high.

Stop Loss: ₹920 Below recent support and 50 DMA — exit if momentum fades.

🧠 Final Thoughts

SHYAMMETL is a technically strong swing trade with breakout potential. While slightly overvalued, its momentum and institutional support make it attractive for short-term gains. Traders should monitor RSI and volume closely for signs of exhaustion or confirmation.

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