SWANENERGY - Swing Trade Analysis

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

Swing Trade Rating: 2.7

📊 Analysis Summary

SWANENERGY presents a mixed swing trade setup. While its valuation is reasonable and technical indicators show mild bullishness, the massive quarterly profit drop, low ROE/ROCE, and weak volume raise red flags. It’s best approached cautiously, with tight risk management.

✅ Strengths

P/E (20.0) ≈ Industry PE (20.2): Fairly valued.

PEG Ratio (0.22): Attractive relative to growth potential.

MACD Positive (11.9): Bullish momentum signal.

RSI at 53.1: Neutral-to-bullish zone — room to rise.

EPS of ₹24.1: Decent earnings base.

Trading near 50 DMA (₹463): Potential support zone.

⚠️ Weaknesses

Quarterly PAT Drop (-163%): Severe earnings contraction.

ROCE (14.3%) & ROE (11.1%): Below industry leaders.

Volume Below Average: Current volume (20.97L) vs 1-week average (34.12L) — weak participation.

FII & DII Selling: Institutional sentiment is negative.

Dividend Yield (0.02%): Negligible income support.

Trading Below 200 DMA (₹496): Long-term trend is weak.

52w Index at 26.8%: Far from yearly high — poor relative strength.

📈 Optimal Entry Price

Buy Zone: ₹455–₹465 Near 50 DMA — enter only if volume picks up and RSI crosses 55.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹495–₹510 Near 200 DMA and short-term resistance.

Stop Loss: ₹445 Below recent support — exit if momentum fades.

🧠 Final Thoughts

SWANENERGY is not an ideal swing trade right now due to its weak earnings and low institutional interest. It may offer a short-term bounce if technicals improve, but conviction is low. Better to wait for a strong volume breakout or improved fundamentals.

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