ECLERX - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.8

📊 Chart & Trend Analysis:

ECLERX is trading at ₹4,550, above its 50 DMA (₹4,470) and well above its 200 DMA (₹3,906), confirming a bullish medium-term trend. RSI at 49.4 indicates neutral momentum, neither overbought nor oversold. MACD at -0.96 shows a mild bearish crossover, suggesting short-term consolidation. Bollinger Bands place the price near the mid-range, reflecting sideways movement. Current volume (50,369) is below the 1-week average (73,471), indicating reduced participation and lack of strong breakout signals.

🔎 Momentum Signals:

- Short-term momentum: Neutral-to-bullish.

- Support levels: ₹4,500, ₹4,400 (DMA 50), ₹3,900 (DMA 200).

- Resistance levels: ₹4,650, ₹4,800, ₹4,959 (recent high).

- Optimal entry zone: ₹4,450–4,550.

- Optimal exit zone: ₹4,700–4,900.

- Current phase: Consolidation within a broader uptrend.

Positive

• Strong ROCE (28.8%) and ROE (23.6%) highlight efficient capital utilization.
• EPS of ₹82.8 reflects robust profitability.
• Stock trading above both 50 DMA and 200 DMA confirms bullish structure.
• FII holding increased by 0.79%, showing foreign investor confidence.
• Quarterly PAT improved from ₹92.9 Cr. to ₹110 Cr. (+12.8%).

Limitation

• High P/E ratio (55.0) compared to industry average (36.6) suggests overvaluation.
• PEG ratio of -51.4 indicates growth does not justify valuation.
• Dividend yield of 0.02% is negligible.
• Volume below average reflects weak participation in recent sessions.

Company Negative News

• DII holding decreased by -0.32%, reflecting reduced domestic institutional confidence.
• MACD bearish crossover signals short-term weakness.

Company Positive News

• Quarterly PAT growth (+12.8%) highlights earnings improvement.
• FII support increased (+0.79%), balancing sentiment.

Industry

• Industry P/E at 36.6 is lower than ECLERX’s (55.0), suggesting peers trade at more attractive valuations.
• IT services and outsourcing sector outlook remains strong with demand for digital transformation.

Conclusion

⚡ ECLERX is consolidating near its 50 DMA with mild bearish signals but remains in a broader uptrend. Entry near ₹4,450–4,550 offers favorable risk-reward, while exits around ₹4,700–4,900 are optimal. Strong fundamentals, profitability, and foreign investor support balance out valuation concerns and weak dividend yield. Short-term trend is sideways-to-up, with potential breakout if volume strengthens.