ECLERX - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.4

📊 ECLERX is a strong swing trade candidate with bullish momentum, solid fundamentals, and high relative strength. Optimal entry is ₹4,700–₹4,735. If already held, consider exiting near ₹4,850–₹4,880.

📈 Positive

• MACD (160) and RSI (65.9) indicate strong bullish momentum nearing breakout territory.
• Trading well above 50-DMA (₹4,267) and 200-DMA (₹3,668), confirming a strong uptrend.
• ROCE (28.8%) and ROE (23.6%) reflect excellent capital efficiency and profitability.
• EPS of ₹80.5 and Qtr Profit Var of 12.8% show consistent earnings growth.
• FII holdings increased by 0.79%, signaling strong foreign investor confidence.

⚠️ Limitation

• P/E (58.9) is significantly above industry average (37.4), suggesting premium valuation.
• PEG ratio (-55.0) is distorted, possibly due to earnings base effect or inconsistent growth projections.
• Dividend yield (0.02%) is negligible for income-focused investors.
• DII holdings declined by 0.32%, showing slight domestic institutional caution.

🚫 Company Negative News

• Stock is trading near its 52-week high of ₹4,868, which may act as short-term resistance.

✅ Company Positive News

• Quarterly PAT rose from ₹92.9 Cr. to ₹110 Cr., reflecting healthy earnings momentum.
• Volume above 1-week average indicates strong market participation and interest.

🌐 Industry

• ECLERX operates in the IT-enabled services and analytics sector, benefiting from digital transformation and outsourcing trends.
• Industry P/E of 37.4 reflects moderate-to-high growth expectations.

🧾 Conclusion

• ECLERX is a technically strong and fundamentally sound swing trade candidate nearing breakout levels.
• Optimal entry: ₹4,700–₹4,735 (near current price and momentum zone).
• Exit target: ₹4,850–₹4,880 (near 52-week high resistance).
• Watch for RSI crossing 70 and MACD continuation to confirm breakout strength.

I can help you track ECLERX’s breakout pattern and compare it with other high-momentum IT service stocks.