VOLTAS - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.8

❄️ VOLTAS Swing Trade Analysis

VOLTAS shows a moderately strong swing trade setup, driven by bullish technical momentum and decent fundamentals. However, valuation concerns and declining earnings temper the upside potential.

✅ Strengths

Technical Momentum

MACD: 19.4 — strong bullish crossover, signaling upward momentum.

RSI: 60.9 — in bullish territory, with room to rise.

Price Above DMA 50 & 200: Current price ₹1,426 is above both DMA 50 (₹1,367) and DMA 200 (₹1,384), confirming trend strength.

Volume Surge: ~42% higher than 1-week average, indicating strong participation.

Fundamental Stability

ROCE: 12.7% / ROE: 9.79% — decent capital efficiency.

EPS: ₹19.4 — supports earnings quality.

Debt-to-Equity: 0.07 — very low leverage.

DII Sentiment Positive: Slight increase in domestic institutional holdings (+0.16%).

⚠️ Risks

Valuation Concerns

P/E: 73.6 vs Industry PE: 56.8 — relatively expensive.

PEG Ratio: 7.84 — growth doesn’t justify valuation.

Earnings Pressure

PAT Decline: ₹220 Cr. → ₹203 Cr. — down 40%, signaling margin pressure.

Institutional Sentiment

FII Holding Down: -0.79%

52W Index: 35.9% — mid-range, indicating partial recovery.

🎯 Trade Strategy

Optimal Entry Price: ₹1,400–₹1,410

Enter on a minor pullback near 50 DMA for a lower-risk setup.

Exit Plan (If Holding)

Target Exit: ₹1,475–₹1,500

Conservative target near short-term resistance.

Stop Loss: ₹1,360

Below 50 DMA to manage downside risk.

VOLTAS is a fair swing candidate for traders seeking momentum in consumer durables. If you'd like to explore alternatives in the same sector, I can help you compare with peers like Blue Star or Whirlpool.

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