SWIGGY - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:02 am

Swing Trade Rating: 2.9

📊 SWIGGY presents a high-risk outlook for swing trading. The stock is currently priced at ₹412, hovering around its 50 DMA (₹404) and 200 DMA (₹405), suggesting neutral technical positioning. RSI (54.6) is mid-range, while MACD (0.64) shows mild bullish momentum. However, fundamentals are weak with negative ROCE (-23.3%), negative ROE (-91.9%), and consistent quarterly losses (PAT -881 Cr.). Despite strong trading volumes and institutional interest (FII +5.32%, DII +11.0%), the lack of profitability and stretched valuations make short-term trading risky.

✅ Optimal Entry Price: Around ₹390–400, closer to DMA support.

🚪 Exit Strategy: If already holding, consider exiting near ₹440–460 (resistance zone) or on weakness below ₹385.

Positive

• 💡 Strong institutional support with FII (+5.32%) and DII (+11.0%) increases.
• 💡 High trading volume (6.96 Cr. vs avg 3.01 Cr.) ensures liquidity for swing trades.
• 💡 Low debt-to-equity (0.01) provides financial flexibility.

Limitation

• ⚠️ Negative ROCE (-23.3%) and ROE (-91.9%) highlight poor capital efficiency.
• ⚠️ Consistent losses with PAT in negative territory.
• ⚠️ No dividend yield reduces investor appeal.
• ⚠️ EPS of -14.4 ₹ reflects weak earnings.

Company Negative News

• 📉 Quarterly losses continue, with PAT at -881 Cr.
• 📉 Profit variation (-87.4%) shows worsening financial performance.

Company Positive News

• 📈 Institutional confidence with increased FII and DII holdings.
• 📈 Improved PAT compared to previous quarter (-991 Cr. to -881 Cr.).

Industry

• 🏭 Industry P/E at 42.2 highlights premium valuations in the food delivery sector.
• 🏭 Strong sector growth driven by rising demand for online food services.

Conclusion

🔎 SWIGGY is a weak candidate for swing trading due to negative fundamentals and ongoing losses. Entry near ₹390–400 may offer a short-term bounce, but upside is capped around ₹440–460. Best suited for aggressive traders willing to take high risk on momentum rather than fundamentals.

I can also map out short-term stop-loss and trailing exit levels to refine SWIGGY’s swing trade plan if you’d like.