SUPREMEIND - Swing Trade Analysis

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

Swing Trade Rating: 3.6

📊 Analysis Summary

SUPREMEIND (Supreme Industries) shows strong fundamentals and is currently trading near its long-term support levels, making it a moderate candidate for swing trading. However, recent earnings contraction and high valuation temper the bullish outlook.

✅ Strengths

ROCE (22.0%) & ROE (17.1%): Excellent capital efficiency.

Debt-to-Equity (0.01): Virtually debt-free — strong financial health.

MACD Positive (3.43): Bullish momentum signal.

RSI at 56.6: Mild bullish bias, not overbought.

Trading near DMA 50 & 200: Consolidation zone — potential breakout setup.

DII Buying (+1.34%): Institutional support from domestic investors.

EPS of ₹70: Strong earnings base.

⚠️ Weaknesses

High P/E (61.8) vs Industry PE (26.4): Significantly overvalued.

PEG Ratio (-44.8): Indicates poor growth relative to valuation.

Quarterly Profit Drop (-26.0%): Sharp earnings decline.

FII Selling (-1.00%): Foreign investors reducing exposure.

Volume Below Average: Current volume (2.45L) vs 1-week average (3.49L) — weak participation.

52w Index at 48.3%: Mid-range — not near breakout or support extremes.

📈 Optimal Entry Price

Buy Zone: ₹4,150–₹4,250 Near DMA support — enter on confirmation of MACD crossover and RSI > 60.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹4,600–₹4,750 Short-term resistance zone before major supply at ₹5,000+.

Stop Loss: ₹4,050 Below DMA cluster — exit if price breaks down with volume.

🧠 Final Thoughts

SUPREMEIND is a technically stable stock with strong fundamentals, but its valuation is stretched and recent earnings are soft. It’s suitable for short-term swing trades if momentum builds, but not ideal for aggressive positioning.

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