ELGIEQUIP - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 19 Sept 25, 2:16 pm

Technical Rating: 4.0

Here’s a detailed technical analysis of ELGIEQUIP (Elgi Equipments Ltd.)

📊 Trend Overview

Current Trend: Consolidating with mild bullish undertone

Price is hovering around the 50 DMA (₹503) and slightly below the 200 DMA (₹528), suggesting indecision and a possible base formation.

RSI at 56.8 is neutral-to-bullish, indicating stable momentum.

MACD at -9.24 shows a bearish crossover, signaling short-term weakness.

📈 Technical Indicators

Moving Averages

Price (₹506) ≈ 50 DMA (₹503) < 200 DMA (₹528): Neutral alignment with potential for reversal

RSI (56.8)

Neutral zone. Momentum is steady with room for upside.

MACD (-9.24)

Bearish crossover. Momentum is fading in the short term.

Bollinger Bands

Price near middle band, indicating low volatility and consolidation.

Volume Trends

Current volume (12.77L) > 1-week average (12.13L): Slight accumulation

Suggests cautious buying interest.

🔍 Short-Term Momentum Signals

Neutral Bias with Reversal Potential

MACD suggests short-term weakness, but RSI and volume hint at stabilization.

Price near key moving averages could act as a pivot zone.

DII inflows (+0.25%) support sentiment despite FII outflows (-1.47%).

📌 Support & Resistance Zones

Level Price (₹) Commentary

Support 1 490 Recent swing low

Support 2 470 Psychological support

Resistance 1 528 200 DMA, short-term ceiling

Resistance 2 565 Previous consolidation zone

Resistance 3 610 Pre-breakdown zone

🎯 Entry & Exit Zones

Optimal Entry: ₹490–₹505 (on dips near support)

Exit Zone: ₹565–₹610 (partial profit booking)

Aggressive Target: ₹640+ if breakout above 200 DMA sustains with volume

🧭 Summary

Trend: Consolidating with mild bullish undertone

Momentum: Mixed—MACD weak, RSI and volume stable

Outlook: Watch for breakout above ₹528 to confirm trend reversal

Valuation: Fair P/E (44.7) vs industry (44.8), strong ROE/ROCE, low debt, and improving profits support medium-term upside despite short-term technical softness

Let me know if you’d like a visual chart or simulated trade setup based on this analysis.

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