TRENT - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.2

📊 TRENT is currently trading at ₹4,065, below both its 50 DMA (₹4,413) and 200 DMA (₹5,032), reflecting bearish technical momentum. RSI at 29.7 suggests the stock is oversold, which could trigger a short-term rebound. However, MACD at -115 indicates strong bearish sentiment. The optimal entry price would be near ₹3,950–₹4,000, close to support levels. If already holding, consider exiting around ₹4,400–₹4,500, where resistance is expected.

✅ Positive

• 📈 Strong ROCE (28.6%) and ROE (27.2%), showing excellent capital efficiency
• 💰 EPS at ₹47.6, reflecting consistent profitability
• 📊 Quarterly PAT increased from ₹423 Cr. to ₹451 Cr., a 6.45% growth
• 📈 DII holding increased by 1.42%, showing domestic institutional support
• 📊 High trading volume (6,70,032) compared to weekly average (5,77,356), indicating active participation

⚠️ Limitation

• 📉 Current price below both 50 DMA and 200 DMA, confirming weak technical trend
• 📊 Very high P/E ratio (85.3) compared to industry average (55.9), suggesting overvaluation
• 📉 Dividend yield at 0.12%, offering minimal shareholder return
• 📉 52-week index at 3.79%, reflecting poor performance compared to peers

🚨 Company Negative News

• 📉 FII holding decreased by -1.58%, showing reduced foreign investor confidence
• 📉 Stock trading far below its 52-week high of ₹7,493, indicating weak sentiment

🌟 Company Positive News

• 📈 EPS at ₹47.6, maintaining profitability despite valuation concerns
• 📊 Quarterly profit growth (+6.45%) highlights operational improvement
• 📈 DII inflows (+1.42%) provide stability against FII outflows

🏭 Industry

• 📊 Industry P/E at 55.9 is lower than TRENT’s, suggesting peers may be more attractively priced
• 🌐 Retail sector remains resilient with long-term demand, but TRENT trades at a premium

📌 Conclusion

TRENT is a cautious swing trade candidate. While fundamentals show profitability and institutional support, technicals remain weak with bearish signals. Entry is best near ₹3,950–₹4,000, while exit should be considered around ₹4,400–₹4,500. Traders should monitor RSI and MACD trends closely before committing.

I can also outline TRENT’s medium-term support and resistance levels to help you track positional trades alongside swing opportunities. Would you like me to prepare that?