ECLERX - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | ECLERX | Market Cap | 15,109 Cr. | Current Price | 3,172 ₹ | High / Low | 4,995 ₹ |
| Stock P/E | 34.6 | Book Value | 307 ₹ | Dividend Yield | 0.03 % | ROCE | 28.8 % |
| ROE | 23.6 % | Face Value | 10.0 ₹ | DMA 50 | 4,102 ₹ | DMA 200 | 4,029 ₹ |
| Chg in FII Hold | 0.49 % | Chg in DII Hold | -1.19 % | PAT Qtr | 126 Cr. | PAT Prev Qtr | 110 Cr. |
| RSI | 19.7 | MACD | -318 | Volume | 1,56,758 | Avg Vol 1Wk | 1,40,063 |
| Low price | 2,116 ₹ | High price | 4,995 ₹ | PEG Ratio | -32.3 | Debt to equity | 0.18 |
| 52w Index | 36.7 % | Qtr Profit Var | 51.4 % | EPS | 91.8 ₹ | Industry PE | 22.0 |
📊 Chart & Trend Analysis:
ECLERX is trading at ₹3,172, well below its 50 DMA (₹4,102) and 200 DMA (₹4,029), indicating strong bearish pressure. RSI at 19.7 suggests extreme oversold conditions, hinting at a possible technical rebound. MACD at -318 confirms deep bearish momentum. Bollinger Bands show price hugging the lower band, reflecting heavy selling pressure. Volume is slightly above the weekly average, showing active participation during the decline.
📈 Momentum Signals:
- RSI below 20 signals extreme oversold conditions, potential for short-term bounce.
- MACD strongly negative, confirming bearish bias.
- Price well below both DMAs shows long-term weakness.
- Volume spike suggests capitulation selling, often preceding reversal attempts.
🎯 Entry & Exit Zones:
- Optimal Entry: ₹3,100–₹3,200 (near current support).
- Stop-Loss: Below ₹3,000 (support zone).
- Exit/Resistance: ₹3,800–₹4,000 (intermediate resistance) and ₹4,100–₹4,150 (DMA cluster).
- Trend Status: Reversing attempt possible from oversold levels, but overall trend remains bearish.
Positive ✅
- Strong ROCE (28.8%) and ROE (23.6%) highlight operational efficiency.
- EPS of ₹91.8 supports valuation strength.
- Quarterly PAT improved (₹126 Cr. vs ₹110 Cr.), showing earnings growth.
- FII holdings increased (+0.49%), showing foreign investor confidence.
Limitation ⚠️
- Stock trading well below both DMAs, reflecting technical weakness.
- High P/E ratio (34.6) compared to industry PE (22.0) suggests overvaluation risk.
- PEG ratio (-32.3) indicates poor growth relative to valuation.
- Dividend yield at 0.03% is negligible, limiting income appeal.
Company Negative News 📉
- Stock corrected sharply from ₹4,995 to ₹3,172, eroding sentiment.
- DII holdings decreased (-1.19%), showing reduced domestic institutional support.
Company Positive News 📈
- Quarterly profit variation (+51.4%) highlights strong earnings momentum.
- Strong ROCE/ROE metrics show superior efficiency.
- FII inflows provide stability despite domestic outflows.
Industry 🌐
- Industry PE at 22.0 is lower than ECLERX’s PE (34.6), highlighting premium valuation.
- IT and outsourcing sector remains demand-driven, supported by global digital transformation.
- Moderate leverage across industry supports resilience, though company debt is manageable at 0.18.
Conclusion 📝
ECLERX is in a bearish phase, trading well below key averages with RSI showing extreme oversold conditions. Fundamentals remain strong with high ROCE/ROE and earnings growth, but valuation risks and weak momentum weigh on sentiment. Institutional flows are mixed, with FII support balancing DII outflows. Best strategy: cautious accumulation near support with strict stop-loss, targeting ₹3,800–₹4,000 for short-term exits and ₹4,100–₹4,150 for medium-term recovery.
Would you like me to extend this into a peer benchmarking overlay for ECLERX against other IT/outsourcing mid-cap peers, so you can evaluate relative strength and compounding opportunities?