WELSPUNLIV - Swing Trade Analysis

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

Swing Trade Rating: 3.2

📊 Analysis Summary

Welspun Living Ltd (WELSPUNLIV) presents a mixed swing trade setup. While the fundamentals are decent, the technical indicators suggest weak momentum and lack of immediate breakout potential. It may be better suited for watchlist status rather than an active swing trade unless momentum improves.

✅ Positives

Valuation

P/E of 20.7 vs Industry PE of 27.8 — moderately undervalued.

Dividend Yield: 1.25% — decent for short-term holding.

Profitability

ROCE: 14.4% & ROE: 13.7% — acceptable but not standout.

EPS: ₹6.58 — modest earnings.

Institutional Interest

DII Holding ↑ 0.31% — domestic support.

⚠️ Weaknesses

Technical Setup

RSI: 45.1 — weak momentum, below neutral zone.

MACD: –0.49 — bearish crossover.

Price below both DMA 50 (₹139) and DMA 200 (₹142) — bearish structure.

Volume

Current volume (11.7L) < Avg volume (24.8L) — declining interest.

Growth Concerns

PAT growth: only +0.97% — stagnant quarter-on-quarter.

PEG Ratio: 10.6 — expensive relative to growth.

52W Index: 29.0%

Weak relative strength — underperforming peers.

FII Holding ↓ 0.60%

Significant foreign exit — sentiment concern.

🎯 Optimal Entry Price

Entry Zone: ₹128–₹132

Near recent support and low — only if RSI improves and MACD flattens.

Wait for Confirmation

RSI > 50 and MACD crossover to positive territory.

🚪 Exit Strategy (If Already Holding)

Exit Target: ₹145–₹150

Near DMA 200 — likely resistance zone.

Stop Loss: ₹125

Below recent support — protects against breakdown.

Would you like me to screen for textile or consumer discretionary stocks with stronger RSI and MACD setups for short-term trades?

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