SIEMENS - Swing Trade Analysis

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

Swing Trade Rating: 2.7

📊 Analysis Summary

SIEMENS is a fundamentally strong company with excellent return metrics and minimal debt, but its current technical setup is weak for swing trading. The stock is in a short-term downtrend, trading below key moving averages, and lacks momentum signals. It’s better suited for long-term investing than short-term trading at this stage.

✅ Strengths

Excellent ROCE (23.6%) and ROE (17.6%): Strong operational and financial efficiency.

EPS of ₹73.2: Solid earnings base.

Low Debt-to-Equity (0.01): Virtually debt-free.

PEG Ratio (1.81): Reasonable growth-adjusted valuation.

Consistent PAT (₹408 Cr. vs ₹372 Cr.): Stable profitability.

⚠️ Weaknesses

High P/E (58.2): Slightly above industry average (57.2) — expensive.

RSI at 39.5: Weak momentum, not yet oversold.

MACD Negative (-39.4): Bearish signal.

Trading Below 50 DMA (₹3,163) and 200 DMA (₹3,281): Downtrend confirmed.

Volume Below Average: Current volume (2.65 lakh) is lower than 1-week average — low participation.

FII and DII Selling: Institutional sentiment is negative.

52w Index at 27.9%: Far below yearly high — poor relative strength.

Quarterly Profit Decline (-37.2%): Earnings volatility.

📈 Optimal Entry Price

Wait for Reversal: ₹2,950–₹3,000 Only consider entry if RSI improves and MACD turns positive. Current setup favors caution.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹3,200–₹3,250 Near 50 DMA and 200 DMA — likely resistance zone.

Stop Loss: ₹2,900 Below recent support — exit if weakness continues.

🧠 Final Thoughts

SIEMENS is a high-quality stock in a weak technical phase, making it a poor candidate for swing trading right now. Traders should wait for momentum indicators to turn positive before considering entry. Long-term investors may still find value in its fundamentals.

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