EICHERMOT - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.2

📈 EICHERMOT is currently in a strong trending phase, with bullish momentum indicators and price action above key moving averages.

📊 Technical Overview

• Trend Status: Trending upward — price has surged from ₹4,536 to ₹7,008, nearing its 52-week high of ₹7,124.
• Moving Averages: Price is above both 50 DMA (₹6,697) and 200 DMA (₹5,868), confirming bullish momentum.
• RSI (57.4): Mid-range, indicating healthy momentum with room for further upside.
• MACD (52.0): Strong positive crossover supports continued bullish sentiment.
• Bollinger Bands: Price near upper band, suggesting strength but also potential resistance.
• Volume: Above average (7.17L vs 4.95L), showing strong participation and buying interest.

📌 Entry & Exit Zones

• Support Zone: ₹6,650–₹6,700 — ideal for entry on pullbacks.
• Resistance Zone: ₹7,100–₹7,124 — potential exit or partial profit booking zone.
• Breakout Level: ₹7,130+ — crossing this could lead to new highs.

✅ Positive

• Strong ROCE (31.7%) and ROE (25.1%) reflect excellent capital efficiency.
• Low debt-to-equity ratio (0.01) supports financial resilience.
• EPS of ₹164 and PEG ratio of 1.09 indicate sustainable growth at reasonable valuation.
• Price action above key moving averages and strong volume trends.
• FII holding increased by 1.16%, showing foreign investor confidence.

⚠️ Limitation

• RSI nearing 60 may signal short-term exhaustion if price approaches resistance.
• DII holding declined by 1.05%, suggesting mixed domestic sentiment.
• Price close to 52-week high, increasing risk of profit booking.

📰 Company Negative News

• Minor decline in DII holdings could reflect cautious domestic outlook.

🌟 Company Positive News

• Quarterly PAT increased from ₹1,125 Cr to ₹1,306 Cr, showing strong earnings momentum.
• Quarterly profit variation of +20.1% supports operational growth.

🏭 Industry

• Operates in automotive and premium motorcycle segment, benefiting from rising consumer demand and export potential.
• Industry P/E (39.7) is slightly lower than the stock’s (42.7), indicating a modest valuation premium.

🧾 Conclusion

• EICHERMOT is technically strong with bullish indicators and robust fundamentals.
• Entry near ₹6,650–₹6,700 is favorable; watch for breakout above ₹7,130.
• Long-term investors may hold for growth and sector leadership; short-term traders should monitor resistance and RSI levels.