USHAMART - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.4

🧵 USHAMART Swing Trade Analysis

USHAMART (Usha Martin) presents a strong swing trade setup with bullish technical momentum, solid fundamentals, and institutional support. While valuation is slightly stretched, the trend favors continuation.

✅ Strengths

Technical Momentum

MACD: 9.22 — strong bullish crossover.

RSI: 70.6 — overbought zone, but confirms strength.

Price Above DMA 50 & 200: Current price ₹416 is well above DMA 50 (₹374) and DMA 200 (₹352), confirming trend strength.

Volume Surge: Current volume is ~62% higher than 1-week average, indicating strong participation.

Fundamental Quality

ROCE: 26.6% / ROE: 21.1% — excellent capital efficiency.

Debt-to-Equity: 0.08 — low leverage.

EPS: ₹9.98 — supports valuation.

DII Sentiment Strong: Domestic institutions increased holdings by 1.81%.

⚠️ Risks

RSI Overbought: May trigger short-term pullback.

Quarterly PAT Dip: ₹78.2 Cr. → ₹70.9 Cr. — slight decline.

High P/E (41.6) vs Industry PE (24.0) — premium valuation.

PEG Ratio: 2.38 — suggests growth may not fully justify price.

🎯 Trade Strategy

Optimal Entry Price: ₹400–₹410

Enter on a minor pullback to reduce risk and avoid chasing.

Exit Plan (If Holding)

Target Exit: ₹440–₹448

Conservative target near recent high of ₹451.

Stop Loss: ₹390

Below 50 DMA to manage downside risk.

USHAMART is a strong swing candidate for momentum-driven traders who can manage entry timing and monitor RSI cooling. Let me know if you'd like to track this setup or compare it with other mid-cap industrials.

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