SONATSOFTW - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.6

📉 Current Price: ₹372

📊 Optimal Entry Price: ₹360–370 (near 50 DMA and RSI support)

📈 Suggested Exit (if holding): ₹395–410 (approaching 200 DMA resistance)

🔷 Positive

• 📈 Strong ROCE & ROE: ROCE at 30.6% and ROE at 28.4% reflect excellent capital efficiency
• 📉 Low Debt: Debt-to-equity ratio of 0.03 indicates financial stability
• 📊 MACD Positive: 1.34 suggests early bullish momentum
• 📈 DII Buying: Domestic institutional holding increased by 0.78%
• 📊 Volume Strength: Current volume (3.27L) above 1-week average (2.98L)

⚠️ Limitation

• 📉 High P/E: 49.4 vs industry average of 29.7 suggests overvaluation
• 📉 Negative PEG Ratio: -16.0 implies poor earnings growth relative to valuation
• 📉 Below 200 DMA: Price trading under 200 DMA (₹418), indicating resistance
• 📉 Quarterly Profit Decline: PAT down 10.4% QoQ despite YoY growth

🚫 Company Negative News

• 📉 FII Selling: Foreign institutional holding declined by 0.83%

✅ Company Positive News

• 💻 Digital Expansion: Continued investment in cloud, data, and platform modernization
• 📈 EPS Strength: ₹7.53 supports valuation and earnings visibility
• 🌍 Global Client Wins: New contracts in North America and Europe

🏭 Industry

• 🖥️ IT Services Sector: Supported by digital transformation and enterprise cloud adoption
• 📉 Valuation Pressure: Sector trading at elevated multiples amid margin compression

🧾 Conclusion

SONATSOFTW presents a moderate swing trade setup with strong fundamentals and technical support near 50 DMA. However, valuation concerns and recent profit decline suggest caution. Entry near ₹360–370 is ideal, with exit near ₹395–410. Monitor MACD strength and RSI movement before initiating new trades.

I can chart SONATSOFTW’s price action with support and resistance zones to help you time your trade more precisely.