Shriram Finance Limited
업데이트됨

Shriram Finance – Potential Breakout or False Alarm?

681

Technical Overview 📈

✅ Uptrend intact – The stock has been taking support at a long-term trendline and briefly fell out during the correction. Now, it has reclaimed the trendline.
✅ Breakout from a Cup & Handle pattern – A bullish pattern indicating possible upside.
✅ Volume picking up – Still needs more confirmation for strength.
✅ Golden Crossover possible – If recent lows hold, further upside can trigger a 50 & 200 DMA crossover.
✅ Sector strength – The finance sector index is trading above key DMAs, showing resilience.


Fundamental Snapshot 💰

  • Revenue Growth: 📈 Increasing YoY
  • EPS Growth: 📈 Improving
  • Profit Growth: 🚀 23.4% CAGR over the last 5 years
  • Healthy Dividend Payout: 21.6%
  • Market Cap: ₹1,26,653 Cr
  • Stock P/E: 15.6
  • Book Value: ₹279
  • Dividend Yield: 1.34%
  • ROCE: 11.3% | ROE: 15.9%
  • Face Value: ₹2


⚠️ Risk Factors:

Low Interest Coverage Ratio
Market Volatility – Could still be forming Lower Highs - Lower Lows (LL-LH) structure.
Volume Needs to Improve for stronger confirmation.
(Source: Screener.in)

Risk-Reward Calculation 🎯

1️⃣ Early Entry (₹695.1)
Stop Loss (SL): ₹607 (-12.65%)
Target: ₹890.8 (+28.12%)
Risk-to-Reward (R:R) = 1:2.22 ✅

2️⃣ Safe Entry (₹732.35)
Stop Loss (SL): ₹607 (-17.08%)
Target: ₹890.8 (+21.7%)
Risk-to-Reward (R:R) = 1:1.27 ✅

💡 Conclusion:

Early Entry (1:2.22) offers a better reward potential but has a higher risk of pullback.
Safe Entry (1:1.27) is more conservative but offers a lower reward.

Conclusion & Trading Plan 🎯

🔹 No need to rush in! Gradual accumulation is a wiser approach at this stage.
🔹 Risk Management is Key! This could be a false breakout or a pullback trap. Wait for confirmation.
🔹 Volume confirmation is essential – Without strong volume, the move might fail.

📢 Educational Idea | Not a Trade Recommendation 📢

This setup is shared to alert traders of a potential winner once the market settles. Not all setups play out, and only 5-6 out of 10 might succeed. Hence, risk management and position sizing are key. 📉📊

📢 Disclaimer: This post is for educational purposes only. It is NOT financial advice. All trades carry risk, and market conditions can change. Do your own research and manage risk accordingly.

거래청산: 스탑 닿음
SL Hit. But keep this on radar.

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