Last Updated on Oct 31, 2024 by Anjali Chourasiya
In the fast-paced world of stock trading, there’s a smart strategy called swing trading. It’s not about long-term commitments or quick day trades but rather making gains from short to medium-term market ups and downs. It’s like catching waves in the stock market to secure profits without constantly watching. In this article, let’s look at the best stocks for swing trading based on fundamental indicators.
Table of Contents
Best Swing Trade Stocks – Updated 2024
| Name | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio | Debt to Equity (%) | 5Y Avg Return on Equity (%) | PEG |
| Trent Ltd | Retail – Apparel | 257,815.50 | 7,252.45 | 173.40 | 0.43 | 13.17 | 4.15 |
| Avenue Supermarts Ltd | Retail – Department Stores | 255,897.53 | 3,932.45 | 100.90 | 0.03 | 13.44 | 2.58 |
| Siemens Ltd | Conglomerates | 246,793.29 | 6,930.05 | 125.86 | 0.01 | 12.37 | 2.29 |
| Tech Mahindra Ltd | IT Services & Consulting | 164,861.89 | 1,684.95 | 69.92 | 0.09 | 16.88 | 2.61 |
| SBI Life Insurance Company Ltd | Insurance | 162,727.48 | 1,624.15 | 85.93 | 0.00 | 14.77 | 4.54 |
| Pidilite Industries Ltd | Diversified Chemicals | 160,396.35 | 3,153.60 | 92.75 | 0.04 | 21.07 | 2.73 |
| ABB India Ltd | Heavy Electrical Equipments | 157,382.23 | 7,426.90 | 126.71 | 0.01 | 14.65 | 2.16 |
| Macrotech Developers Ltd | Real Estate | 117,504.41 | 1,179.20 | 75.85 | 0.44 | 8.85 | 4.79 |
| United Spirits Ltd | Alcoholic Beverages | 105,164.02 | 1,445.85 | 74.69 | 0.04 | 18.06 | 3.86 |
| Havells India Ltd | Electrical Components & Equipments | 104,229.06 | 1,662.50 | 82.02 | 0.04 | 19.15 | 4.04 |
Note: The data is from 31st October 2024. The list of the top swing trade stocks is taken from Tickertape Stock Screener and based on the following parameters.
- Market Cap: Above 5,000 (Set the lower limit to 5,000)
- Debt-to-Equity Ratio: Below 0.50 (Set the higher limit to 0.50)
- 5Y Avg ROE: Above 0 (Set the lower limit to 0)
- Create a custom filter for PEG Ratio: PE Ratio/Earnings Per Share – Set its limit above 2
Note that the list of the best stocks for swing trading India today are in no order of preference. Please note that these stock selection criteria and the stocks are provided for informational purposes only; it is essential to conduct your own research.
🚀 Pro Tip: Explore Tickertape’s Financial Statements for detailed company financial reports to make informed investment decisions.
Details of Top Swing Trading Stocks
Trent Ltd
Trent Ltd, founded in 1998, is part of the Tata Group and operates in the retail sector, primarily focusing on apparel. The company is known for its flagship brand, Westside, a leading fashion retailer in India. It also runs Zudio, a value fashion chain. Trent’s focus is on expanding its footprint in the Indian fashion and lifestyle market through a diverse retail portfolio.
Today, 31 October 2024, Trent Ltd has a market capitalisation of Rs. 2,57,815.50 cr. and a closing stock price of Rs. 7,252.45. The company has a high price-to-earnings (PE) ratio of 173.40 and maintains a debt-to-equity ratio of 0.43%. Over the past five years, the average return on equity (ROE) has been 13.17%, and the PEG ratio stands at 4.15.
Avenue Supermarts Ltd
Avenue Supermarts Ltd, incorporated in 2000 by Radhakishan Damani, operates under the brand DMart, a chain of hypermarkets and supermarkets in India. The company has established itself as a dominant player in the retail sector, offering a wide range of household products at competitive prices.
As of today, Avenue Supermarts Ltd boasts a market capitalisation of Rs. 2,55,897.53 cr., with its shares trading at Rs. 3,932.45. The PE ratio is 100.90, reflecting robust investor confidence. The company shows a strong financial position with a minimal debt-to-equity ratio of 0.03%. The five-year average ROE is 13.44%, while the PEG ratio is 2.58.
Siemens Ltd
Siemens Ltd, a leading player in the industrial and technological space, was established in India in 1922 as part of the global Siemens Group. The company operates in various segments, including electrification, automation, and digitalisation, providing solutions across industries.
On 31 October 2024, Siemens Ltd has a market capitalisation of Rs. 2,46,793.29 cr. and a closing price of Rs. 6,930.05. It holds a PE ratio of 125.86 and a debt-to-equity ratio of 0.01%, indicating a strong financial position with minimal leverage. The five-year average return on equity is 12.37%, and the PEG ratio is 2.29.
Tech Mahindra Ltd
Tech Mahindra Ltd, founded in 1986, is a part of the Mahindra Group and is one of India’s prominent IT services and consulting companies. The firm specialises in digital transformation, consulting, and business re-engineering solutions, catering to a global clientele.
Today, the market capitalisation of Tech Mahindra Ltd is Rs. 1,64,861.89 cr., with a closing stock price of Rs. 1,684.95. It has a PE ratio of 69.92 and a low debt-to-equity ratio of 0.09%. The company’s five-year average return on equity is 16.88%, and the PEG ratio is 2.61.
SBI Life Insurance Company Ltd
SBI Life Insurance Company Ltd, founded in 2001, is a joint venture between State Bank of India (SBI) and BNP Paribas Cardif. It is one of the leading life insurance companies in India, offering a comprehensive range of life insurance and pension products.
As of 31 October 2024, SBI Life Insurance has a market capitalisation of Rs. 1,62,727.48 cr., and its stock price is Rs. 1,624.15. The PE ratio is at 85.93, indicating strong market valuation. It has no debt, leading to a debt-to-equity ratio of 0.00%. The five-year average ROE is 14.77%, with a PEG ratio of 4.54.
Pidilite Industries Ltd
Pidilite Industries Ltd, established in 1959, is renowned for its flagship product, Fevicol, and has diversified into adhesives, sealants, and construction chemicals. It is a leading chemical manufacturer in India, catering to a wide array of industrial and consumer needs.
Today, the company holds a market capitalisation of Rs. 1,60,396.35 cr., with its stock closing at Rs. 3,153.60. Pidilite’s PE ratio is 92.75, coupled with a low debt-to-equity ratio of 0.04%. The five-year average ROE is 21.07%, reflecting strong profitability. The PEG ratio is 2.73.
ABB India Ltd
ABB India Ltd, a subsidiary of the global ABB Group, was established in 1949 and is a key player in the heavy electrical equipment industry. The company specialises in robotics, industrial automation, and power technology solutions, catering to various sectors in India.
As of today, ABB India Ltd’s market capitalisation is Rs. 1,57,382.23 cr., and the stock price is Rs. 7,426.90. The company shows a PE ratio of 126.71, a low debt-to-equity ratio of 0.01%, and a five-year average ROE of 14.65%. The PEG ratio is 2.16.
Macrotech Developers Ltd
Macrotech Developers Ltd, known for its brand Lodha Group, was founded in 1980 and is one of India’s largest real estate developers, primarily operating in residential and commercial real estate markets.
Today, Macrotech Developers Ltd has a market capitalisation of Rs. 1,17,504.41 cr., with a share price of Rs. 1,179.20. The PE ratio is 75.85, and the debt-to-equity ratio stands at 0.44%, reflecting higher leverage compared to peers. The five-year average ROE is 8.85%, and the PEG ratio is 4.79.
United Spirits Ltd
United Spirits Ltd, founded in 1826 and now part of the Diageo Group, is India’s largest manufacturer of alcoholic beverages. The company’s popular brands include McDowell’s, Royal Challenge, and Antiquity.
As of 31 October 2024, United Spirits Ltd has a market capitalisation of Rs. 1,05,164.02 cr., with shares priced at Rs. 1,445.85. The PE ratio is 74.69, and the debt-to-equity ratio is 0.04%. The company’s five-year average return on equity is 18.06%, and the PEG ratio is 3.86.
Havells India Ltd
Havells India Ltd, established in 1958, is a major player in the electrical components and equipment sector. It manufactures a wide range of products, including electrical appliances, cables, and lighting.
Today, Havells India Ltd’s market capitalisation is Rs. 1,04,229.06 cr., and the stock closed at Rs. 1,662.50. It has a PE ratio of 82.02, with a debt-to-equity ratio of 0.04%. The company’s five-year average ROE is 19.15%, while the PEG ratio is 4.04.
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A Brief on the Filters Used
When it comes to selecting the best stocks for swing trading, several key factors come into play. One popular approach uses fundamental indicators such as the Price to Earnings to Growth ratio (PEG), debt-to-equity, and Return on Equity (ROE) to filter potential stocks. The PEG ratio helps evaluate a stock’s valuation relative to its growth prospects, while the debt-to-equity ratio assesses the company’s financial leverage.
Additionally, ROE provides insight into the profitability and efficiency of a company. By considering these indicators, swing traders can identify stocks with solid growth potential, manageable debt levels, and strong profitability, increasing the likelihood of capturing favourable price movements during their trading timeframes.
What is Swing Trading in the Stock Market?
Swing trading is a trading strategy that involves holding positions in financial assets for short periods, typically several days to several weeks, in order to capitalise on short-term price movements. It is a speculative practice aimed at producing capital gains in the medium term, often leveraging technical analysis to determine optimal entry and exit points. Swing traders focus on short-term trends and aim to profit from expected price moves, utilising patterns and signals that indicate potential future movements in swing trading shares and good stocks for swing trading.
Unlike day trading, where positions are opened and closed within the same day, swing trading allows positions, such as swing stocks, to be held over several days or weeks. This strategy enables traders to avoid the intraday market noise but exposes them to overnight and weekend market risks, where prices could change dramatically due to off-hours news events. Swing traders often use tools like the Tickertape screener for swing trading to identify stocks for swing trading today or plan for the top 10 swing trading stocks for tomorrow. Swing trading is adaptable to various financial markets and is particularly popular among traders seeking to actively manage their portfolios, optimising positions to take advantage of stock price oscillations and market volatility. It offers a balance for those looking for larger gains than typical buy-and-hold strategies but who do not wish to engage in the constant monitoring required by day trading.
Benefits of Swing Trading
- Potential for substantial profits: Swing trading has the potential for substantial profits by capitalising on swift market moves. This trading style allows traders to yield significant returns over short periods, taking advantage of quick shifts in market dynamics, including swing stocks to buy today.
- Market momentum utilisation: Swing trading leverages short-term trends to benefit from market momentum. By focusing on these trends, traders can strategically position themselves to profit from the market’s directional momentum, which is often driven by broader economic indicators or sector-specific news. Many traders look for the best shares for swing trading and the best swing trading stocks to maximise their gains.
- Reduced overnight risk: Swing trading involves reduced overnight risk compared to day trading. By holding positions for several days, swing traders are less exposed to the risks that come from overnight market changes, which can be unpredictable and driven by off-hour news events. Using tools like a ticker tape screener for swing trading can help identify best stock for swing trading and minimise potential overnight surprises.
- Part-time suitability: Swing trading offers flexibility, making it suitable for those with other commitments. This approach to trading can accommodate part-time engagement, allowing individuals to trade without needing to monitor the markets continuously throughout the day. This is why the best swing trader in India and others often recommend swing trading for those balancing work and trading.
- Diverse opportunities: Swing traders have access to diverse opportunities across various markets and sectors. This trading style is not limited to specific types of assets or markets, providing traders with the flexibility to explore a wide array of opportunities depending on their interests and market conditions. By identifying swing trading stocks for next week, traders can effectively plan their strategies across different sectors.
- Technical analysis application: Swing trading employs technical analysis to enhance decision-making by identifying potential entry and exit points. Utilising charts, the best indicators for swing trading, and historical data, swing traders can make informed decisions on when to enter or exit trades, optimising their chances for profit.
- Lower transaction costs: Swing trading can lead to lower transaction costs over time due to fewer trades compared to day trading. By engaging in fewer transactions, swing traders can potentially save on costs associated with trading, such as commissions and spreads, which can add up in more active trading styles. This benefit is one reason why best swing trading stocks in India are attractive for those aiming for cost-efficiency.
Risks of Swing Trading
Swing trading, a popular trading strategy, involves buying and selling financial assets within a short period, typically several days to several weeks, to capitalise on short-term price movements. While it can be a lucrative way to generate income, swing trading also carries risks that investors should be aware of.
- Higher Risk Involved: Despite the knowledge element required in swing trading, there are often higher risks involved. Even if one uses the best of techniques, stock markets are unpredictable and may result in losses at times. Using stop-loss orders can help in limiting the losses due to movements within a short span.
- Market Risk and Position Risk: When it comes to trading, there are two types of risk: market risk and position risk. Most traders experience both forms of risk. However, swing traders are more likely to experience position risk than market risk. This is due to the strategy of looking to profit off short-term price movements.
- Vulnerability to Gap Ups and Gap Downs: In swing trading, vulnerability to gap ups and gap downs is there. If your trade is in the opposite direction and the stock or index opens with a gap up or gap down, it could lead to heavy losses, and even stop losses are not able to protect in such cases.
- Managing Risk in Swing Trading: To manage risk in high volatile stocks for swing trading, traders can use strategies such as trading smaller positions, using stop-loss orders, and diversifying their portfolios. These strategies can help limit the losses due to movements within a short span and ensure that the risk is managed effectively.
Swing trading can be a lucrative way to generate income in the stock market, but it is essential to manage risk to ensure that the strategy is successful. By understanding the risks involved and using strategies to manage them, investors can minimise their exposure to losses and maximise their returns.
Time Frame for Swing Trading in India
For swing trading in India, the ideal time frame generally spans from a few days to a few weeks. This approach aims to leverage short- to medium-term price movements in stocks or financial instruments. Here’s an overview of effective time frames for swing trading:
- 1 Week to 4 Weeks: This time frame is highly popular as it allows traders to benefit from short-term price shifts while avoiding daily market fluctuations. It provides sufficient time for stocks to move in the anticipated direction.
- Daily and Weekly Charts: Swing traders often use daily charts for precise entry and exit points and weekly charts for a broader view of stock trends. This combination helps confirm the overall market direction.
- Market Conditions & Trading Strategies: The choice of time frame should align with current market conditions. In volatile markets, shorter time frames may be more effective, while stable markets can favour more extended time frames. Different swing trading strategies also influence the ideal time frame. Momentum strategies may benefit from shorter periods, whereas trend-following strategies might work better over longer durations.
Note: Technical analysis is crucial for swing trading, involving the examination of stock charts and indicators to determine optimal entry and exit points. This method can help identify the best times to participate in swing trading by maximising potential profits from market movements.
Difference Between Swing Trading vs Day Trading
Here is a table of comparison between day trading vs swing trading:
| Aspect | Day Trading | Swing Trading |
| Trading Duration | Seconds, minutes, or hours within a single day. | Several days to weeks. |
| Trading Frequency | High frequency, multiple trades per day. | Lower frequency, fewer trades over days or weeks. |
| Size of Returns | Smaller, more frequent gains. | Larger gains from fewer trades. |
| Market Analysis Style | Primarily technical analysis for short-term price movements. | Combination of technical and fundamental analysis. |
| Position Holding | Positions are opened and closed within the same day. | Positions are held overnight or longer. |
| Time Commitment | Requires full dedication and constant monitoring. | Part-time commitment with fewer hours needed daily. |
| Expertise Level | Requires significant expertise and quick decision-making. | Less expertise is needed; beginners may find it easier. |
| Transaction Frequency | Numerous transactions daily, increasing profit opportunities. | Fewer transactions, but often with larger gains. |
| Technology Needs | Requires advanced technology and quick execution. | Less reliant on the latest technology. |
Is Swing Trading Safe?
Swing trading, like all trading strategies, involves risk and isn’t inherently “safe.” While it can offer substantial profits, it also exposes traders to potential losses. The risks arise in even the best volatile stocks for swing trading from market volatility, the need for accurate timing in entering and exiting positions, and exposure to overnight and weekend price changes. Traders can manage these risks by using stop-loss orders, diversifying their investments, and staying informed about market conditions. Ultimately, the safety of swing trading depends on an individual’s risk tolerance, market knowledge, and trading discipline.
To Conclude
Stock selection criteria for swing trading varies from investor to investor. Remember, it is crucial to conduct your own research before investing. For this purpose, #TickertapeHaiNa! With over 200 filters, custom filters, pre-built screens, custom universes, a linking watchlist, export data, and more features, Tickertape Stock Screener is your perfect companion for finding the next best stock for your portfolio. Don’t wait; seize the opportunity now!
Frequently Asked Questions on Best Stocks for Swing Trading
1. How can I effectively pick stocks for swing trading using technical analysis?
Investors can utilise tools like moving averages and trendlines for swing trading stock selection. By incorporating technical analysis methods, traders can identify the best stocks for swing trading based, including the most volatile stocks for swing trading, on price movements and trend analysis.
2. What are the top 10 stocks recommended for swing trading in the upcoming week?
Stay informed about the best stocks for swing trading by using a swing stock screener. The Ticketape Stock Screener can help you identify top swing trading stocks based on specific technical criteria. Try it now!
3. How to select stocks for swing trading to maximise profitability?
Utilise Tickertape Stock Screener for swing trading to filter stocks based on key technical criteria like PEG. By selecting stocks with strong fundamentals and clear trends, traders can enhance profitability in swing trading.
4. What criteria should I consider when selecting stocks for swing trading?
When choosing stocks for swing trading, focus on factors like liquidity, trend analysis, and price movements. Using a swing stock screener can aid in identifying stocks that align with optimal conditions for successful swing trades.
5. How to pick stocks for swing trading and maximise returns?
Incorporate swing trading strategies for stock selection that involve technical analysis and trend confirmation. By utilising tools like moving averages and trendlines, traders can effectively pick stocks for swing trading and increase the potential for profitable trades.
Explore other popular stock collections on Tickertape –
Here’s are some of the popular stock collections across different sectors in India:
As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!
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