TEJASNET - Swing Trade Analysis

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

Swing Trade Rating: 2.4

📊 Analysis Summary

TEJASNET (Tejas Networks) currently shows strong bearish momentum and poor earnings performance, making it a high-risk swing trade candidate. While the RSI suggests oversold conditions, the fundamentals and technicals do not support a confident short-term bounce.

⚠️ Major Red Flags

Negative PAT & Sharp Decline

Quarterly loss widened from ₹71.8 Cr. to ₹194 Cr. — a concerning 350% drop.

High P/E: 59.6 vs Industry PE: 45.3

Overvalued despite negative earnings, which is unsustainable.

Debt to Equity: 0.89

Relatively high leverage, increasing financial risk.

DMA 50 & 200 Far Above Current Price

Trading well below both moving averages (₹686 & ₹852), confirming a strong downtrend.

FII/DII Holding Decline

Institutional investors are exiting, signaling lack of confidence.

52W Index: 2.76%

Barely any gain over the past year — underperforming significantly.

✅ Minor Positives

RSI: 25.5

Oversold territory — could trigger a technical bounce.

MACD: -30.0

Deeply negative, but may be bottoming out. Watch for crossover.

Volume Consistency

Current volume is aligned with weekly average, indicating steady interest.

PEG Ratio: 0.55

Suggests some growth potential if earnings stabilize — but speculative.

🎯 Optimal Entry Price

Entry Zone: ₹570–₹585

Near recent low and RSI oversold zone. Only consider entry if there's a bullish reversal pattern or MACD crossover.

🚪 Exit Strategy (If Already Holding)

Exit Target: ₹640–₹660

Short-term resistance zone near previous support levels. Use this range to reduce exposure.

Stop Loss: ₹560

Below recent low. Protects against further downside if bearish trend continues.

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