SRF - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.8

📈 Swing Trade Analysis for SRF Ltd

SRF Ltd shows a moderately favorable setup for swing trading, with technical and fundamental indicators offering a mixed but tradable outlook.

🔍 Key Technical & Fundamental Insights

✅ Strengths

Volume Spike: Current volume is ~45% higher than the weekly average, signaling short-term interest.

DMA Support: Price is hovering near the 200 DMA (₹2,864), a potential support zone.

Low Debt: Debt-to-equity ratio of 0.29 adds financial stability.

Positive Institutional Activity: DII holdings increased by 0.43%, suggesting domestic confidence.

Swing Potential: Price is 67.7% above its 52-week low, indicating room for retracement or breakout.

⚠️ Weaknesses

Overvaluation: P/E of 61.5 vs industry average of 21.9 suggests the stock is richly priced.

Bearish Momentum: MACD at -3.99 and RSI at 49.2 reflect weak momentum and indecision.

Earnings Decline: PAT dropped from ₹513 Cr. to ₹397 Cr., a 22.6% fall Q-o-Q.

Negative PEG (-11.0): Indicates poor growth relative to valuation.

🎯 Optimal Entry Price

Entry Zone: ₹2,880–₹2,900

Just above the 200 DMA and below the 50 DMA, this zone offers a low-risk entry with potential upside.

🚪 Exit Strategy (If Already Holding)

Target Exit: ₹3,150–₹3,200

Near recent resistance and analyst consensus targets

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Stop-Loss: ₹2,850

Below 200 DMA, to protect against breakdown.

🧠 Final Thought

SRF is not a high-conviction swing trade but offers a tactical opportunity if momentum improves. Keep a close eye on MACD crossover and RSI movement above 55 for confirmation.

Sources

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trendlyne.com

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dailybulls.in

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