SYNGENE - Swing Trade Analysis

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

Swing Trade Rating: 3.4

📊 Analysis Summary

SYNGENE is showing strong short-term technical momentum, but its valuation is stretched and recent institutional selling adds caution. While it’s suitable for a momentum-based swing trade, the upside may be limited unless volume and earnings growth accelerate.

✅ Strengths

MACD Positive (12.8): Strong bullish momentum.

RSI at 71.2: Overbought — confirms strength but signals caution.

Trading at 200 DMA (₹711) and above 50 DMA (₹659): Technical breakout zone.

Debt-to-Equity (0.12): Low leverage — solid financial base.

DII Buying (+2.55%): Domestic institutions accumulating.

Quarterly Profit Growth (+67.4%): Strong earnings rebound.

EPS of ₹12.6: Decent earnings base.

⚠️ Weaknesses

P/E (56.5) > Industry PE (50.6): Overvalued.

PEG Ratio (13.3): Expensive relative to growth.

ROCE (13.5%) & ROE (10.5%): Moderate efficiency — not standout.

FII Selling (-2.96%): Foreign investors exiting.

Volume Below Average: Current volume (19.09L) vs 1-week average (25.53L).

RSI Overbought: May face short-term pullback.

Dividend Yield (0.18%): Minimal income support.

52w Index at 31.2%: Weak relative strength.

📈 Optimal Entry Price

Buy Zone: ₹685–₹695 Slight pullback from current level — enter if RSI cools to 65 and volume improves.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹740–₹760 Near short-term resistance before major supply zone.

Stop Loss: ₹675 Below breakout level — exit if momentum fades.

🧠 Final Thoughts

SYNGENE is a technically strong but fundamentally expensive stock. It’s viable for a short-term swing trade, especially if momentum continues, but caution is warranted due to overbought RSI and weak volume. Ideal for nimble traders, not long-term holders.

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