ELGIEQUIP - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 3.7

📊 Technical & Momentum Overview

✅ Strengths

Price Action: Trading near 50 DMA (₹503), but slightly below 200 DMA (₹528)—short-term stability with medium-term resistance.

RSI (56.8): Neutral-bullish zone, tradable with room before overbought.

Volume: Slightly above 1-week average—momentum is steady.

ROCE (28.4%) & ROE (21.9%): Excellent capital efficiency.

Debt-to-Equity (0.01): Virtually debt-free—adds margin of safety.

EPS (₹11.3) vs P/E (44.7): Fairly valued relative to industry PE (44.8).

Qtr Profit Growth (+12%): Sequential earnings momentum.

⚠️ Weaknesses

MACD (–9.24): Bearish divergence—momentum fading.

FII Outflow (–1.47%): Foreign investors reducing exposure.

PEG (1.92): Slightly overvalued on growth-adjusted basis.

52W Index (32%): Weak relative performance—trading far below yearly high (₹752).

PAT Decline: ₹81.5 Cr vs ₹99.2 Cr—sequential dip.

Broker consensus suggests a technical resistance near ₹531.93, with long-term trend still bearish

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. However, the stock has delivered strong multi-year returns and is currently near its 52-week low, indicating potential value opportunity

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.

🎯 Optimal Entry Price

Buy Zone: ₹495–₹505 (near 50 DMA and support zone)

Momentum Entry: ₹510–₹515 only if MACD flattens and RSI crosses 60

🚪 Exit Strategy (If Already Holding)

Target Exit: ₹545–₹560 (near 200 DMA and resistance zone)

Stop Loss: ₹475 (below recent support and VWAP)

Exit Trigger: RSI dips below 50 or MACD diverges further

Selva, ELGIEQUIP is a technically cautious but fundamentally solid swing candidate. If you're building a specialty industrial basket or want alert logic for MACD reversal and RSI breakout, I can help you script it.

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