ELGIEQUIP - Technical Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Technical Rating: 3.7

Here’s a focused technical interpretation of Elgi Equipments Ltd. (ELGIEQUIP), including chart cues, trend signals, and trade-level strategies

📈 Trend Overview

Current Price: ₹563

Trading above 50 DMA (₹534) and 200 DMA (₹539) → modest bullish bias

Still well below 52W high (₹753) → implies partial recovery underway

Trend Verdict: Consolidating with a tilt toward trend resumption

📊 Momentum Indicators

RSI: 55.5 → Neutral to slightly bullish zone

MACD: +11.1 → Mild bullish divergence; upward momentum brewing

Volume: 5.0L vs 20.6L avg → significantly below average, caution on conviction

Momentum is recovering but lacks volume support for explosive breakout.

📉 Moving Averages Check

DMA Level (₹) Interpretation

50 DMA 534 Reliable short-term support

200 DMA 539 Long-term base under current price

Being above both DMAs affirms structural strength, but a catalyst is needed to push past resistance.

📎 Bollinger Bands Signal

Price likely drifting toward mid-band or slightly above

Band width moderate → reflects rangebound movement

Breakout setup only likely if volume surges and RSI approaches 60+

📍 Trade Zones and Strategy

Zone Type Price Range (₹) Action Plan

Entry Zone ₹535–₹555 Accumulate near 50 DMA support

Resistance ₹590–₹615 Short-term ceiling from recent highs

Exit Target ₹625–₹645 Possible breakout zone with momentum lift

Support Zone ₹500–₹520 Base zone if reversal sets in

Trailing stop-loss suggested: ₹495

🧾 Institutional & Valuation Insights

FII Holding ↓ 1.47%, DII ↑ 0.25% → mixed participation

P/E: 51.1, Industry PE: 41.8 → premium valuation

PEG Ratio: 1.88 → growth priced in, but upside not cheap

Strong ROE/ROCE, low debt → long-term quality intact

Qtr PAT jump of 33.8% → earnings momentum may support technical rebound

🧭 Conclusion

ELGIEQUIP is hovering in a technical consolidation phase, supported by upward-sloping averages but challenged by weak volume and a lack of strong directional signals. Tactical buying near ₹540–₹555 could work for short-term traders if MACD momentum builds. A push above ₹615 with RSI >60 would flip the chart decisively bullish.

Need help tracking RSI spikes or mapping visual trendlines? I'm game.

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