What is Swing Trading? Know about the Best Stocks to do Swing Trade
- 3 min read•
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- 24 Oct 2023
Swing trading, a kind of technical trading, involves the extended holding of positions in a particular stock, exceeding a single day. Traders maintain these stock positions for several days or weeks, a practice well-received in the Indian stock market. This trading style aims to capture profits from an asset's fluctuations over days to weeks. Here are the best stocks to swing trade for the week of 3rd October 2023.
Best Swing Trade Stocks
Sobha
Sobha generated an operating revenue of INR 3,653.31 Cr. over the past 12 months. The remarkable annual revenue growth of 21% stands out, while there is room for improvement in the pre-tax margin at 4%. The return on equity (ROE) is currently fair at 4%, but there is also potential for improvement. From a technical perspective, the stock is comfortably positioned above its crucial moving averages.
Hindustan Copper
Hindustan Copper generated INR 1,699.88 Cr. in operating revenue over the past 12 months. There is room for improvement in the annual revenue, which has experienced a decline of -5%. The pre-tax margin is commendable at 24%, indicating financial strength and the return on equity (ROE) stands at a respectable 14%. The company has a healthy balance sheet with a debt-to-equity ratio of 1%.
Spandana Sphoorty Financial
On a trailing 12-month basis, Spandana Sphoorty Financial reports an operating revenue of INR 1,662.09 Cr. There is room for improvement in the annual revenue de-growth, which is 0%. Additionally, there is a need for improvement in the pre-tax margin, currently at 1%, while the ROE of 0% is considered poor and requires attention.
Aditya Birla Money
On a trailing 12-month basis, Aditya Birla Money generated an operating revenue of INR 279.44 Cr. The company achieved an outstanding annual revenue growth of 19%, a great pre-tax margin of 18%, and an exceptional return on equity (ROE) of 31%. From a technical perspective, the stock is comfortably positioned above its key moving averages.
Cummins India
On a trailing 12-month basis, Cummins India generated an operating revenue of INR 8,294.42 Cr. It achieved an impressive annual revenue growth of 26%, demonstrating exceptional financial performance. The company boasts a pre-tax margin of 18%, signifying a strong financial position. Additionally, Cummins India exhibits an outstanding Return on Equity (ROE) of 21%.
Notably, the company is debt-free, and its robust balance sheet positions it well to sustain stable earnings growth throughout various business cycles.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with financial professionals before making any investment decisions
FAQs on Swing Trade Stocks
How Long Should I Hold on to a Stock?
In general, swing trading entails maintaining a position, either in a long or short stance, for a duration extending beyond a single trading session, yet typically not surpassing several weeks or a couple of months.
How Many Stocks for Swing Trade Do I Need?
Ensure a range of 5 to 10 distinct sectors is incorporated to maximize the benefits of diversification; more than 20 sectors may dilute the advantages gained.
