SWSOLAR - Swing Trade Analysis

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

Swing Trade Rating: 2.1

📊 Analysis Summary

SWSOLAR (Sterling and Wilson Renewable Energy) is currently in a strong technical downtrend with weak momentum indicators and institutional selling. Despite a massive quarterly profit spike, the stock remains overvalued and lacks short-term trading strength. It’s not a favorable candidate for swing trading at this time.

✅ Strengths

ROCE (16.0%): Decent capital efficiency.

Quarterly Profit Surge (+663%): Strong earnings rebound.

EPS of ₹4.68: Improving profitability.

Volume Near Average: Stable trading interest.

⚠️ Weaknesses

RSI at 37.9: Weak momentum, nearing oversold.

MACD Negative (-4.94): Strong bearish signal.

Trading Below 50 DMA (₹307) and 200 DMA (₹365): Confirmed downtrend.

High P/E (62.2) vs Industry PE (23.8): Significantly overvalued.

PEG Ratio (2.23): Expensive even after adjusting for growth.

Book Value (₹43.1) << Current Price (₹290): Trading at a steep premium.

No Dividend Yield: No income cushion.

ROE (8.24%): Weak equity efficiency.

FII & DII Selling: -0.02% and -2.48% — institutional exit.

52w Index at 13.7%: Very poor relative strength.

📈 Optimal Entry Price

Buy Zone: ₹270–₹280 Near recent support — only consider entry if RSI rises above 45 and MACD flattens.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹310–₹325 Near 50 DMA and short-term resistance.

Stop Loss: ₹260 Below recent support — exit if weakness continues.

🧠 Final Thoughts

SWSOLAR is a high-risk swing trade with poor technicals and overvaluation concerns. Traders should avoid entry until momentum indicators improve. If already holding, consider exiting on any bounce toward the 50 DMA.

Would you like to explore solar or renewable energy stocks with stronger technical setups like KPI Green or Borosil Renewables?

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