EIHOTEL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 2.9

📊 Technical Analysis

• Chart Patterns: Price (363 ₹) is below both 50 DMA (379 ₹) and 200 DMA (380 ₹), indicating weakness.
• Moving Averages: Bearish bias as price trades under short-term and long-term averages.
• RSI: 31.8 → oversold territory, suggesting potential for a technical rebound.
• MACD: -3.76 → bearish crossover, confirming downward momentum.
• Bollinger Bands: Price near lower band, indicating oversold conditions and possible short-term bounce.
• Volume Trends: Current volume (1.14 Lakh) is higher than 1-week average (87,409), showing active selling pressure.

📈 Momentum & Signals

• Short-term Momentum: Bearish bias with oversold RSI suggesting possible short-term bounce.
• Support Zones: 350 ₹ (near-term), 330 ₹ (strong support), 293 ₹ (52-week low).
• Resistance Zones: 379–380 ₹ (DMA levels), 400 ₹ (psychological), 435 ₹ (recent high).
• Optimal Entry: 350–330 ₹ range if RSI dips closer to 30.
• Optimal Exit: 379–400 ₹ range unless breakout above 435 ₹.
• Trend Status: Stock is trending downward with oversold signals; possible consolidation near support levels.

✅ Positive

• Strong ROCE (21.9%) and ROE (17.5%) indicate efficient capital use.
• Low debt-to-equity ratio (0.04) shows financial stability.
• DII holdings increased (+0.39%), showing domestic institutional confidence.
• PEG ratio (0.31) suggests favorable growth relative to valuation.

⚠️ Limitation

• Price trading below both 50 DMA and 200 DMA, showing weakness.
• Quarterly profit variation down by -15.8%, showing earnings pressure.
• Dividend yield at 0.42% is modest.

📉 Company Negative News

• PAT dropped from 134 Cr. to 97.6 Cr. in the latest quarter.
• Stock trading well below 52-week high (435 ₹), reflecting weak momentum.

📈 Company Positive News

• Strong fundamentals with high ROCE and ROE.
• DII holdings increased, balancing weak FII flows.
• Low debt levels provide financial flexibility.

🏭 Industry

• Industry PE at 34.1, slightly higher than company PE (32.4), suggesting EIHOTEL trades at fair valuation.
• Hospitality sector remains cyclical but benefits from tourism and business travel recovery.

🔎 Conclusion

• Stock is in a downtrend with oversold RSI suggesting possible short-term bounce.
• Best entry near 350–330 ₹; exit near 379–400 ₹ unless breakout above 435 ₹.
• Long-term investors should be cautious due to earnings pressure but can benefit from strong fundamentals and sector recovery.