SUNDRMFAST - Swing Trade Analysis

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

Swing Trade Rating: 2.9

📊 Analysis Summary

SUNDRMFAST (Sundram Fasteners) is a fundamentally sound company with decent profitability and low debt, but its technical indicators are weak, making it a low-conviction swing trade at present. The stock is trading just below its 200 DMA and lacks momentum, with bearish signals from MACD and RSI.

✅ Strengths

ROCE (17.1%) and ROE (14.9%): Strong operational and financial efficiency.

EPS of ₹25.7: Solid earnings base.

Low Debt-to-Equity (0.22): Financially conservative.

DII Buying (+1.73%): Positive domestic institutional sentiment.

Dividend Yield (0.72%): Offers modest income.

⚠️ Weaknesses

MACD Negative (-0.54): Bearish momentum signal.

RSI at 47.0: Neutral — lacks strength or reversal.

Trading Below 200 DMA (₹1,049): Long-term trend is weak.

Volume Below Average: Current volume (44K) vs 1-week average (65K) — low participation.

FII Selling (-1.87%): Foreign investors exiting.

High P/E (39.2) vs Industry PE (31.2): Overvalued.

PEG Ratio (6.65): Expensive relative to growth.

Quarterly Profit Decline (-6.83%): Earnings contraction.

52w Index at 26.1%: Poor relative strength — far from yearly high.

📈 Optimal Entry Price

Buy Zone: ₹970–₹990 Near recent support — enter only if RSI crosses 50 and MACD turns positive.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹1,040–₹1,060 Near 200 DMA and short-term resistance zone.

Stop Loss: ₹950 Below recent support — exit if bearish momentum continues.

🧠 Final Thoughts

SUNDRMFAST is a watchlist candidate for swing trading, not a high-conviction setup. Traders should wait for a clear reversal signal before entering. If already holding, consider exiting near the 200 DMA unless volume and momentum improve.

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