ERIS - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 2.6

📉 Technical & Momentum Analysis

Bearish Momentum: RSI at 28.9 and MACD at -25.8 indicate oversold conditions and strong downward pressure.

Price Below 50 DMA: Current price ₹1,638 is below 50 DMA (₹1,715), showing short-term weakness.

Volume Spike: Current volume (4.03L) is above 1-week average (2.95L), suggesting possible capitulation or panic selling.

📊 Fundamental Snapshot

Valuation Red Flag: P/E of 139 vs industry average of 33.4 is extremely stretched; PEG of -3.21 implies negative growth expectations.

Weak Returns: ROCE 6.86% and ROE 3.02% are far below industry norms—capital efficiency is poor.

Debt Load: Debt-to-equity of 0.89 is relatively high for a pharma company.

Profit Spike: PAT jumped from ₹30.5 Cr to ₹100 Cr (+487%), but this may be due to one-off gains or low base effect

1

.

Institutional Sentiment: FII slightly reduced (-0.04%) and DII marginally increased (+0.11%)—neutral stance.

🎯 Trade Strategy

🔹 Optimal Entry Price

₹1,520–₹1,540: Near 200 DMA with margin of safety. Wait for RSI to cross 35 and MACD to flatten before entry.

🔹 Exit Strategy (If Already Holding)

₹1,710–₹1,740: First resistance zone near 50 DMA. Consider exiting if RSI crosses 50 or MACD turns positive.

₹1,850–₹1,910: Final exit near 52-week high if momentum recovers.

Trailing Stop: ₹1,590 to protect downside.

🧠 Summary

ERIS is currently in a technical downtrend with weak fundamentals and high valuation risk. While the recent profit spike is notable, it lacks sustainability signals. This setup is best suited for oversold bounce trades, not momentum swings. Entry near 200 DMA with confirmation is key; otherwise, capital is better deployed in stronger setups.

Want me to prep a filtered basket with better ROCE, PEG < 1.5, and MACD crossover candidates?

1

trendlyne.com

Edit in a page