TVSMOTOR - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 4.5

📊 Swing Trade Analysis for TVSMOTOR

TVSMOTOR is a strong candidate for swing trading, backed by powerful technical momentum, excellent profitability, and institutional interest. While valuation is elevated and RSI is nearing overbought territory, the trend remains intact for a short-term tactical trade.

✅ Strengths

Momentum Indicators: RSI at 72.7 and MACD at 119 signal strong bullish momentum.

Trend Confirmation: Price is well above both 50 DMA (₹3,196) and 200 DMA (₹2,799), confirming a robust uptrend.

Profitability: ROCE at 34.7% and ROE at 30.6% reflect exceptional capital efficiency.

Earnings Strength: PAT of ₹779 Cr. with a Qtr Profit Var of 34.9% shows consistent growth.

Institutional Confidence: FII holdings increased by 0.94%, indicating foreign investor support.

EPS Strength: ₹61.3 EPS supports valuation and earnings quality.

PEG Ratio: At 1.33, valuation is aligned with growth expectations.

⚠️ Weaknesses

High RSI: At 72.7, the stock is nearing overbought territory, suggesting caution for fresh entry.

Valuation Premium: P/E of 57.9 vs industry average of 33.4 reflects rich pricing.

DII Pullback: Slight decline (-0.93%) in DII holdings may reflect domestic caution.

Low Dividend Yield: At 0.28%, offers minimal income support.

🎯 Optimal Entry Price

Entry Zone: ₹3,400–₹3,450

A minor pullback near the 50 DMA offers a lower-risk entry with trend support and RSI cooling.

🚪 Exit Strategy (If Already Holding)

Target Exit: ₹3,580–₹3,600

Near the recent high, where resistance may emerge.

Stop-Loss: ₹3,250

Below the 50 DMA to protect against reversal.

🧠 Final Thought

TVSMOTOR is a technically and fundamentally strong swing candidate. While valuation is rich and RSI is elevated, the setup favors a short-term trade with disciplined entry and exit. Ideal for momentum-driven traders looking to capitalize on trend continuation.

Edit in a page