In a strategic move to streamline and strengthen the Government of India’s disinvestment roadmap, the Department of Investment and Public Asset Management (DIPAM) has announced the development of an in-house policy model. This internal framework is expected to provide sharper guidance for the disinvestment initiatives earmarked for FY26. The development comes amid evolving market conditions and an increased emphasis on fiscal prudence.

While DIPAM’s mandate includes the monetization of public sector undertakings (PSUs), the new model aims to improve timing, valuation, and selection of entities up for stake sale. This is not just a financial strategy—it’s also a signal to investors, institutions, and retail traders that the government is serious about economic efficiency and private sector participation.

Interestingly, this policy-level innovation coincides with a growing interest among retail traders in equity markets. Many are turning to swing trading as a preferred strategy to leverage short- to medium-term price movements. For those wondering how to do swing trading in India, this is an ideal time to align with market-driven reforms.

What is DIPAM’s New In-House Model?

Historically, DIPAM relied heavily on external consultants, investment banks, and financial advisors to assess market appetite, determine stake sizes, and manage valuations. With the development of an internal policy model, DIPAM aims to reduce this dependence and speed up decision-making. The framework will assess:

• Strategic timing based on market sentiment
  
• Valuation bands using historical price-to-book ratios
  
• Sector-specific risk analysis
  
• Private sector interest and strategic fit
  
• Past disinvestment performance and benchmarks
  

This model will serve as a guide to optimize stake sales in PSUs such as BEML, Shipping Corporation of India, and others lined up for FY26.

Relevance for Swing Traders and Market Participants

For those actively learning how to do swing trading in India, the DIPAM initiative signals increased market liquidity and potential volatility—two factors that swing traders thrive on. When government entities are up for disinvestment, the announcement itself often triggers significant price movement. If timed right, these swings present golden trading opportunities.

Retail traders who specialize in swing trading should monitor disinvestment timelines, announcements, and news flow. Whether it’s a partial stake sale or a full privatization, such events often lead to price gaps, increased volumes, and temporary momentum, all of which are ideal conditions for swing trades.

How to Do Swing Trading in India

Understanding how to do swing trading in India starts with getting the basics right. Swing trading is a method of trading that seeks to capture short- to medium-term gains in a stock (or any financial instrument) over a period of a few days to several weeks.

Here are the foundational steps:

1. Choose a Reliable Trading Platform
   Platforms like Zerodha, Upstox, and Angel One offer strong technical charting tools and fast execution.
   
2. Select Liquid Stocks
   Focus on mid- to large-cap stocks, especially those influenced by government policy—such as PSU banks, infrastructure, and energy stocks during disinvestment seasons.
   
3. Use the Best Technical Indicators for Swing Trading
   These help identify entry and exit points. Understanding the best technical indicators for swing trading can drastically improve your trade outcomes.
   
4. Set Entry and Exit Targets
   Use stop-loss and take-profit orders to protect your capital.
   
5. Track News and Economic Developments
   Stay updated on government announcements like DIPAM’s disinvestment schedule, which can offer excellent swing opportunities.
   

Best Technical Indicators for Swing Trading

When developing a strategy around how to do swing trading in India, using the right technical indicators is crucial. The best technical indicators for swing trading include:

1. Moving Averages (MA)

Simple Moving Average (SMA) and Exponential Moving Average (EMA) help smooth out price data and reveal trends. A common approach is using the 50-day and 200-day EMAs to spot reversals.

2. Relative Strength Index (RSI)

RSI helps identify overbought or oversold conditions, which are essential for swing entries. An RSI below 30 may signal a buy, while above 70 may signal a sell.

3. MACD (Moving Average Convergence Divergence)

This momentum indicator shows the relationship between two EMAs. MACD crossovers are strong signals for trend reversals.

4. Bollinger Bands

These measure volatility. Price movements toward the upper or lower bands can indicate breakout or reversal opportunities.

5. Volume Oscillators

Volume confirmation is essential in swing trading. A price movement with strong volume often confirms trend strength.

Using the best technical indicators for swing trading in combination increases your accuracy and helps manage risk better.

How Government Policy Impacts Swing Trading

Understanding how to do swing trading in India also involves following macroeconomic and policy decisions. With DIPAM’s model-driven disinvestment plan, swing traders have a clear signal that strategic public sector stock movements will occur in clusters. Each announcement or policy shift can lead to short-term volatility that is ideal for swing positions.

For example:

• A DIPAM-led announcement of privatizing a PSU might lead to a 5-10% intraday gain.
  
• Swing traders who use RSI and Bollinger Bands to spot a breakout can ride the momentum for 2-5 days.
  

By aligning trades with these policy shifts, you not only manage risk better but also maximize your return potential.

The Road Ahead: What to Watch in FY26

FY26 is poised to be one of the most active years for government disinvestment. As the model kicks in, expect:

• A faster timeline between announcements and stake sales
  
• Better market valuation of PSUs
  
• Renewed private interest in sectors like logistics, oil & gas, and defense
  

For swing traders, this means several opportunities to apply strategies effectively. As you master how to do swing trading in India, make sure you integrate fundamental catalysts like government announcements with technical indicators.

If you’re looking to capitalize on India’s evolving capital markets and upcoming policy-driven volatility, now is the time to master swing trading.

Learn how to do swing trading in India using proven strategies and tools
Discover the best technical indicators for swing trading to boost your success rate
Start building a watchlist of PSU stocks ahead of the FY26 disinvestment waveDon’t wait for the market to surprise you—get ahead with swing trading today.