Finance leader - Poonawala fincorp techno-fundamental analysis
Poonawala Fincorp - Finance sector
Trade idea - Swing trade/short term momentum capturing
- Entry - 400 on retest
- Stoploss - 390 (-2.64%)
- Position sizing - 20% of the capital
- Target - 519.55 (30% of the breakout)
Catalyst behind
- Finance sector as a whole have come out with great results.
- Reserve bank of India with their new policy for banks have created a major impact on finance
sector also.
- Quarterly diluted EPS - 410% up from previous years same quarter (we usually take diluted eps
for concentrated analysis and the reason we compare from previous years quarter - because
to hinder one time extraordinary earnings on sale of real estate or machinery)
- Annual diluted EPS - 720% up from past 3 years (2020 2021 2022) superb earnings
- Return on equity - 19.9% (considered great as its above average of 17%)
- Total revenue - 16% up from previous years same quarter (record high earnings at 7440 Cr)
Technical analysis
- RSI weekly - crossing 60
- Price is above all trend moving averages - 20dma and 50dma it also took 200dma support
- Bollinger band - Squeeze open (volatility contraction)
- It had a shakeout before breakout which gives the confirmation that big institutions are
behind this upsurge move. You can add on to positions when monthly breakout point above
425 crosses.
Happy trading
Trade idea - Swing trade/short term momentum capturing
- Entry - 400 on retest
- Stoploss - 390 (-2.64%)
- Position sizing - 20% of the capital
- Target - 519.55 (30% of the breakout)
Catalyst behind
- Finance sector as a whole have come out with great results.
- Reserve bank of India with their new policy for banks have created a major impact on finance
sector also.
- Quarterly diluted EPS - 410% up from previous years same quarter (we usually take diluted eps
for concentrated analysis and the reason we compare from previous years quarter - because
to hinder one time extraordinary earnings on sale of real estate or machinery)
- Annual diluted EPS - 720% up from past 3 years (2020 2021 2022) superb earnings
- Return on equity - 19.9% (considered great as its above average of 17%)
- Total revenue - 16% up from previous years same quarter (record high earnings at 7440 Cr)
Technical analysis
- RSI weekly - crossing 60
- Price is above all trend moving averages - 20dma and 50dma it also took 200dma support
- Bollinger band - Squeeze open (volatility contraction)
- It had a shakeout before breakout which gives the confirmation that big institutions are
behind this upsurge move. You can add on to positions when monthly breakout point above
425 crosses.
Happy trading