SWANCORP - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.8
| Stock Code | SWANCORP | Market Cap | 12,762 Cr. | Current Price | 407 ₹ | High / Low | 558 ₹ |
| Stock P/E | 712 | Book Value | 146 ₹ | Dividend Yield | 0.02 % | ROCE | 0.12 % |
| ROE | 0.07 % | Face Value | 1.00 ₹ | DMA 50 | 440 ₹ | DMA 200 | 462 ₹ |
| Chg in FII Hold | 0.81 % | Chg in DII Hold | -0.08 % | PAT Qtr | 5.61 Cr. | PAT Prev Qtr | 7.72 Cr. |
| RSI | 38.2 | MACD | -11.7 | Volume | 4,18,882 | Avg Vol 1Wk | 8,14,796 |
| Low price | 362 ₹ | High price | 558 ₹ | PEG Ratio | -556 | Debt to equity | 0.08 |
| 52w Index | 22.8 % | Qtr Profit Var | 360 % | EPS | 0.57 ₹ | Industry PE | 19.1 |
📈 Chart Patterns & Trend: SWANCORP is trading at 407 ₹, below both the 50 DMA (440 ₹) and 200 DMA (462 ₹), indicating weakness. RSI at 38.2 suggests the stock is nearing oversold territory. MACD at -11.7 confirms bearish momentum. Bollinger Bands place price near the lower band, hinting at possible support but overall bearish undertone.
📊 Volume Trends: Current volume (4.18 lakh) is significantly lower than the 1-week average (8.14 lakh), reflecting weak participation and declining investor interest.
🎯 Momentum Signals:
- Price below both 50 DMA and 200 DMA confirms bearish bias.
- RSI near oversold zone may trigger a technical bounce.
- MACD negative, reinforcing weak momentum.
💡 Entry Zone: 390–400 ₹ (near recent support).
🚪 Exit Zone: 440–450 ₹ (near 50 DMA resistance).
🔎 Overall Trend: The stock is reversing from highs and currently in a bearish phase. Sustained recovery requires crossing 440–462 ₹ with volume support.
Positive
- FII holdings increased (+0.81%), showing foreign investor confidence.
- Low debt-to-equity ratio (0.08) reflects financial stability.
- Quarterly profit variation surged (+360%), highlighting earnings momentum.
Limitation
- Stock trading below both 50 DMA and 200 DMA, confirming weakness.
- Extremely high P/E of 712 compared to industry PE of 19.1, suggesting severe overvaluation.
- ROCE (0.12%) and ROE (0.07%) are very weak, showing poor efficiency.
- PEG ratio of -556 highlights unsustainable valuation relative to growth.
Company Negative News
- Quarterly PAT declined from 7.72 Cr. to 5.61 Cr., showing earnings pressure.
- Weak trading volumes indicate low investor participation.
Company Positive News
- Quarterly profit variation shows strong rebound (+360%).
- FII support increased, signaling global confidence.
- EPS of 0.57 ₹ supports long-term valuation despite short-term weakness.
Industry
- Industry PE at 19.1 is far lower than SWANCORP’s PE, highlighting extreme premium valuation.
- Sector supported by cyclical demand in chemicals and industrial products.
- Peers may offer better valuation, but SWANCORP shows speculative interest.
Conclusion
SWANCORP is in a bearish phase, trading below key moving averages with weak momentum signals. Entry near 390–400 ₹ offers limited risk, while resistance lies at 440–450 ₹. The stock needs stronger volume and a break above 462 ₹ to confirm reversal. Long-term fundamentals remain weak, and short-term traders should be cautious until momentum improves.
I can also prepare a comparative snapshot of SWANCORP vs SUZLON to highlight which one offers stronger recovery potential in the near term.