Finance leader - Poonawala fincorp techno-fundamental analysis

30 Kas 2023

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