WELSPUNLIV - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.6

🧺 WELSPUNLIV Swing Trade Analysis

WELSPUNLIV (Welspun Living Ltd.) presents a moderately favorable swing trade setup. While the fundamentals are stable and technical indicators show early bullish signs, declining earnings and valuation concerns suggest a cautious approach.

✅ Strengths

Technical Positioning

MACD: 0.79 — bullish crossover, indicating potential upward momentum.

RSI: 59.0 — healthy zone, nearing bullish territory.

Price Above 50 DMA (₹124) — short-term trend support.

Fundamental Stability

ROCE: 13.8% / ROE: 13.2% — decent capital efficiency.

EPS: ₹4.50 — supports valuation.

Debt-to-Equity: 0.43 — moderate and manageable.

Dividend Yield: 1.34% — modest income support.

DII Sentiment Positive: Domestic institutions increased holdings by 0.31%.

⚠️ Risks

Quarterly PAT Decline: ₹98.2 Cr. → ₹76.0 Cr. — down 47.6%, signaling earnings pressure.

Price Below 200 DMA (₹135) — long-term trend remains weak.

High PEG Ratio: 3.26 — growth doesn’t justify valuation.

FII Sentiment Negative: Foreign institutions reduced holdings by 0.60%.

Volume Drop: Current volume is ~62% below 1-week average, indicating reduced participation.

52W Index: 26.5% — near yearly lows, suggesting weak recovery.

🎯 Trade Strategy

Optimal Entry Price: ₹122–₹126

Enter near 50 DMA if MACD strengthens and RSI crosses 60.

Exit Plan (If Holding)

Target Exit: ₹134–₹138

Conservative target near 200 DMA.

Stop Loss: ₹118

Below recent support to manage downside risk.

WELSPUNLIV is a cautious swing candidate for traders who can monitor technical reversals and volume closely. If you're looking for stronger setups in the textile or home furnishing space, I can help you explore alternatives.

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