SWSOLAR - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 2.6

Technical Analysis Report for Sterling and Wilson Renewable Energy Ltd (SWSOLAR)

• Trend Status: Reversing from long-term highs, testing critical support
• Moving Averages: Price below both 50 DMA (₹251) and 200 DMA (₹313) — strong bearish alignment
• RSI: 34.2 — weak momentum, approaching oversold territory
• MACD: Negative at -8.78 — bearish crossover, trend weakening
• Bollinger Bands: Price near lower band — oversold signal, possible technical bounce
• Volume: Significantly below weekly average — low conviction in current price action

Entry & Exit Zones

• Support Levels: ₹216 (recent low), ₹205 (trendline), ₹190 (historical support)
• Resistance Levels: ₹251 (DMA 50), ₹275 (gap zone), ₹313 (DMA 200)
• Optimal Entry: ₹215–₹225 (on confirmation of support)
• Optimal Exit: ₹270–₹310 (if reversal sustains)

Positive

• ROCE (13.5%) and ROE (11.2%) — moderate operational efficiency
• PEG ratio of 0.30 — attractive growth-adjusted valuation

Limitation

• Price below key moving averages — weak technical structure
• MACD and RSI indicate bearish momentum
• Debt-to-equity ratio of 2.60 — high leverage risk
• EPS of ₹-100 — negative earnings

Company Negative News

• Quarterly PAT declined from ₹78.4 Cr. to ₹54.9 Cr. — earnings contraction
• FII holding declined by 1.30%, DII by 1.84% — institutional outflows

Company Positive News

• None reported in current data — company facing financial and technical pressure

Industry

• Renewable energy sector — long-term growth potential but capital-intensive and policy-sensitive
• Industry P/E of 22.1 — SWSOLAR trades below sector average (P/E of 16.9)

Conclusion

SWSOLAR is currently reversing from its long-term highs and testing critical support near ₹216. While valuation appears attractive and ROCE is moderate, technical indicators and institutional outflows suggest caution. Traders may consider speculative entries near ₹215 with exits around ₹310, but only on confirmation of reversal and improving volume trends.