SUNPHARMA - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.0

📊 Swing Trade Analysis for SUNPHARMA

SUNPHARMA presents a technically stable and fundamentally strong setup for swing trading, though valuation and short-term momentum indicators suggest a cautious entry.

✅ Strengths

Profitability: ROCE at 16.8% and ROE at 17.8% reflect solid capital efficiency.

Earnings Rebound: Qtr Profit Var of 294% shows a strong recovery, despite sequential decline.

Trend Support: Price is above the 50 DMA (₹1,632) and near the 200 DMA (₹1,677), indicating consolidation with potential upside.

Valuation Alignment: PEG ratio of 1.08 suggests fair valuation relative to growth.

Institutional Confidence: DII holdings increased by 0.80%, a positive signal.

EPS Strength: ₹20.0 EPS supports earnings quality.

⚠️ Weaknesses

High Valuation: P/E of 79.4 vs industry average of 33.4 suggests premium pricing.

MACD Negative (-3.61): Indicates short-term bearish divergence.

Volume Dip: Slightly below 1-week average, showing mild cooling.

FII Pullback: Decline of 0.70% in FII holdings may reflect foreign caution.

Low 52w Index (23.5%): Indicates underperformance relative to its yearly high.

🎯 Optimal Entry Price

Entry Zone: ₹1,620–₹1,630

A pullback near the 50 DMA offers a lower-risk entry with trend support.

🚪 Exit Strategy (If Already Holding)

Target Exit: ₹1,700–₹1,740

A reasonable upside before testing resistance near ₹1,760–₹1,800.

Stop-Loss: ₹1,600

Below recent support to protect against reversal.

🧠 Final Thought

SUNPHARMA is a fundamentally strong swing candidate with trend support and earnings momentum. While valuation is rich and MACD is negative, disciplined entry and exit can yield a rewarding short-term trade. Watch for MACD crossover and RSI climbing above 62 for confirmation.

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