SWSOLAR - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 2.9

📈 Chart & Trend Analysis:

SWSOLAR is trading at ₹214, below both its 50 DMA (₹228) and 200 DMA (₹287), indicating a bearish trend. RSI at 42.6 suggests weak momentum, leaning toward oversold territory. MACD at -6.01 is negative, confirming bearish undertone. Price is far below its 52-week high (₹480) and close to its low (₹197), reflecting heavy correction. Bollinger Bands show price near the lower band, signaling downside pressure. Current volume (21.8 lakh) is significantly higher than the weekly average (13.4 lakh), suggesting strong selling activity.

🔑 Momentum Signals:

- RSI near 43 indicates weak momentum, potential for rebound if support holds.

- MACD negative, confirming bearish continuation.

- Price below both DMAs signals weakness.

- Elevated volume indicates strong participation in the downtrend.

🎯 Entry & Exit Zones:

- Support: ₹200 – ₹210 (near recent lows).

- Resistance: ₹225 – ₹230 (near 50 DMA).

- Optimal Entry: ₹205 – ₹215 range for speculative rebound trades.

- Exit/Profit Booking: ₹225 – ₹230 unless breakout occurs.

📊 Trend Status:

The stock is reversing downward with bearish signals. Oversold RSI may trigger a short-term relief rally, but overall trend remains weak unless price sustains above 200 DMA.

Positive

• PEG ratio at 0.29 indicates attractive valuation relative to growth.
• ROCE (13.5%) and ROE (11.2%) show moderate efficiency.
• High trading volume indicates investor interest, though currently on the sell side.

Limitation

• Price trading below both 50 DMA and 200 DMA.
• MACD negative, signaling bearish momentum.
• EPS negative (-₹100), reflecting weak profitability.
• High debt-to-equity ratio (2.60) raises financial risk.
• Dividend yield at 0.00%, offering no income return.

Company Negative News

• Quarterly PAT declined to ₹54.9 Cr from ₹78.4 Cr.
• Quarterly profit variation at -26.8% shows weak momentum.
• FII holdings reduced (-1.30%) and DII holdings reduced (-1.84%), reflecting weaker investor confidence.

Company Positive News

• PEG ratio at 0.29 highlights growth potential at lower valuation.
• Stock trading above its 52-week low (₹197), showing resilience despite correction.

Industry

• Industry P/E at 18.8, SWSOLAR trades at fair valuation (P/E 16.5).
• Renewable energy sector has long-term growth potential but faces cyclical challenges.
• Peers with stronger earnings trade at healthier multiples, highlighting SWSOLAR’s relative weakness.

Conclusion

⚠️ SWSOLAR is in a bearish reversal phase with oversold RSI suggesting possible short-term bounce. Entry near ₹205–₹215 may be considered for speculative trades, while resistance at ₹225–₹230 is critical. Weak fundamentals, high debt, and declining profits warrant cautious positioning despite attractive PEG ratio and sectoral growth potential.