TORNTPOWER - Swing Trade Analysis

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

Swing Trade Rating: 4.1

📊 Analysis Summary

TORNTPOWER (Torrent Power) is a technically oversold but fundamentally strong stock, making it a promising candidate for a swing trade. The recent surge in quarterly profits and attractive valuation metrics support a potential short-term rebound.

✅ Strengths Supporting a Swing Trade

RSI: 31.6

Near oversold zone — suggests a bounce may be imminent.

MACD: –25.7

Bearish but flattening — watch for a crossover to confirm reversal.

PEG Ratio: 0.49

Indicates undervaluation relative to earnings growth.

Quarterly PAT Growth: +146%

PAT jumped from ₹476 Cr. to ₹1,060 Cr. — strong earnings momentum.

ROE: 19.0% & ROCE: 16.0%

Solid profitability metrics.

EPS: ₹59.3

Strong earnings base supports valuation.

FII Holding ↑ 0.36%

Foreign investors increasing exposure — a positive signal.

P/E: 23.6 vs Industry PE: 17.9

Slightly above average, but justified by growth.

⚠️ Risks to Watch

Trading Below DMA 50 & 200 (₹1,407 & ₹1,450)

Indicates short-term downtrend. Needs technical confirmation for reversal.

Volume Below Average

Current volume is slightly lower than weekly average — wait for a spike to confirm buying interest.

DII Holding ↓ 0.49%

Domestic institutions reducing exposure.

52W Index: 14.2%

Underperformance over the year — not a momentum leader.

🎯 Optimal Entry Price

Entry Zone: ₹1,285–₹1,310

Near recent support and RSI oversold level. Look for bullish candlestick patterns or MACD crossover before entering.

🚪 Exit Strategy (If Already Holding)

Exit Target: ₹1,420–₹1,450

Near DMA resistance levels — ideal zone to book profits.

Stop Loss: ₹1,250

Below recent support and psychological level — protects against further downside.

Would you like to explore other power sector stocks with stronger momentum or lower volatility for swing trading?

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