Carborundum Universal Ltd. (CARBORUNIV)

Date Range: 2026-03-22 to 2026-06-22 | Starting Capital: ₹100,000

Symbol-Specific Risk & Execution Parameters

These execution parameters have been optimized specifically for CARBORUNIV based on historical volatility, structural character, and friction constraints:

• ATR Stop Distance (max_stop_atr): 1.50x ATR
• Minimum Reward-to-Risk Ratio (min_reward_risk): 1.20R
• Friction Buffer Target (friction_min_target_pct): 0.03%
• Positional Holds Allowed (allow_positional_hold): True

[!WARNING]

Offline Daily Macro Data Missing: The macro and multi-horizon outlook sections were omitted because local daily price data was not found.

Executive Summary

Model Backtest & Validation Summary

To validate the conviction score recommendations, the system ran historical simulation backtests for CARBORUNIV under institutional execution assumptions:

What Changed Since Previous Report?

• Initial Run / Baseline: No previous report was found for this symbol to perform comparative validation. This report establishes the baseline parameters.

Actionable Trading Guidance

Direct Stock Setup Outlook

No active intraday setup detected for the next session.

⌥ Options Strategy Recommendation

Recommended Vehicle: Cash Equity

Reason: Highest risk-adjusted return (EV/Risk Ratio of -0.051) with consistent historical expectancy and zero options friction.

• Volatility Dashboard: Realized Vol (RV): 42.3% | Implied Vol (IV): 43.6% | IV Rank: 69.6% | IV Percentile: 85.9%
• Directional Probabilities: P(up): 10% | P(down): 10% | P(flat): 80%
• Expected Return Distribution: Median: -0.58% (10th: -8.14%, 90th: +16.41%) | Expected Move: 0.00 ATR

Expected Value (EV) Payoff Matrix:

Systematic Execution Plan (Generic Framework)

• Stop Loss: 1.5 × ATR from entry
• Profit Targets: Target 1 (1R) for 50% scale-out, trail remainder.

Expected Outcomes & Suitability

Expected 1 Month Outcome

• Bullish: 10.0%
• Neutral: 79.9%
• Bearish: 10.0%

Expected Return Range

• Median: -0.58%
• 25th percentile: -5.36%
• 75th percentile: +5.61%

Portfolio Suitability

Suitable For:

• None

Not Suitable For:

• ✗ Swing Traders
• ✗ Positional Traders
• ✗ Long-Term Growth Investors
• ✗ Income Investors
• ✗ Low Volatility Portfolios
• ✗ Growth Investors

Sector & Regime Context

• Sector: Construction
• Sector Strength: 3.2/10
• Relative Strength: -0.83% vs NIFTY
• Sector Rank: 9 of 19 sectors
• Structural Regime: RANGE
• Tactical Setup Focus: Range Mean Reversion, Failed Breakout Reversal, Directional Change Overshoot, Bollinger Band Reversal, Volume Capitulation Reversal, PDH/PDL Breakout, Opening Gap Fade

Conviction Score Breakdown:

• 1. Technical Setups: +0.0 / 35 (No active technical setup and no strong daily momentum structure)
• 2. Fundamentals: +20.0 / 25 (Steady business growth structure (Grade B))
• 3. Sector Context: +6.4 / 20 (Sector Strength: 3.2/10 (Construction))
• 4. Regime & Momentum: +12.5 / 20 (Daily candle close location: +2.5 pts (50% of range), Market in low-volatility/range regime RANGE: +5.0 pts, VIX is 13.5 (Low volatility/risk): +5.0 pts)

Conviction Rating System Matrix:

Fundamental Analysis & Annual Guidance

• Valuation: Trailing P/E: 117.6 | Forward P/E: 34.4 | PEG Ratio: N/A | Price/Book: 6.07
• Business Growth: Revenue YoY: 0.15% | Quarterly EPS: 1.20% | ROE: N/A
• Risk & Dividend: Beta: 0.31 | Dividend Yield: 0.32% | Book Value: 206.19
• Investment Grade: Grade B (Accumulate)
• Recommendation: Business is growing steadily. Consider accumulating on technical pullbacks. High-stability defensive profile (Beta: 0.31).
• Annual Entry Guidance: Do not chase breakouts. Accumulate gradually exclusively during market corrections or pullbacks to the 50-day and 200-day SMAs.
• Annual Exit Guidance: Liquidate if earnings growth turns negative, or if the broader market regime turns structurally bearish (NIFTY loses 200 SMA).

Historical & Simulation Evidence

Model Validation: Capital Preservation (No Trades)

The system did not execute any trades during this backtest period. This is a valid risk-mitigation outcome: potential setups were systematically filtered out because they did not meet our strict expectation-to-risk constraints.

Data Status: Successfully analyzed 765047 minutes of price action.

Filtering Status: 4 potential setups detected but rejected by execution filters:

• 1 rejected by Extendedness/200 SMA filter.
• 3 rejected by Intraday Liquidity Filter (vol < threshold).