ELGIEQUIP - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.6

📈 ELGIEQUIP is currently in a consolidating phase, with price action stabilizing near short-term moving averages and showing early signs of bullish momentum.

📊 Technical Overview

• Trend Status: Consolidating — price has corrected from its high of ₹677 to ₹498 and is hovering near the 50 DMA (₹491).
• Moving Averages: Price is above 50 DMA but slightly below 200 DMA (₹517), indicating medium-term resistance.
• RSI (56.3): In the neutral-to-bullish zone, suggesting moderate strength and potential for upward continuation.
• MACD (2.53): Positive crossover supports short-term bullish sentiment.
• Bollinger Bands: Price near mid-band, indicating low volatility and potential for breakout.
• Volume: Below average (3.75L vs 4.39L), suggesting cautious accumulation.

📌 Entry & Exit Zones

• Support Zone: ₹480–₹490 — favorable for entry on dips with confirmation of support.
• Resistance Zone: ₹515–₹530 — potential exit or partial profit booking zone.
• Breakout Level: ₹540+ — crossing this could lead to a trend reversal toward ₹600.

✅ Positive

• Strong ROCE (28.4%) and ROE (21.9%) reflect efficient capital deployment.
• Low debt-to-equity ratio (0.01) ensures financial stability.
• PEG ratio of 1.89 suggests reasonable valuation relative to growth.
• MACD crossover and RSI above 50 indicate improving momentum.

⚠️ Limitation

• Price still below 200 DMA and 52-week high, facing overhead resistance.
• Volume below average, indicating lack of strong conviction.
• Stock P/E (44.0) slightly above industry average (40.8), suggesting limited valuation headroom.

📰 Company Negative News

• FII holding declined by 1.50%, reflecting reduced foreign investor interest.
• Quarterly PAT dropped from ₹99.2 Cr to ₹81.5 Cr, indicating earnings moderation.

🌟 Company Positive News

• Quarterly profit variation of +12.0% shows operational resilience.
• DII holding increased by 1.01%, showing growing domestic institutional confidence.

🏭 Industry

• Operates in industrial air compressors and engineering solutions, a sector tied to manufacturing and infrastructure growth.
• Industry P/E (40.8) is slightly lower than the stock’s, indicating a modest valuation premium.

🧾 Conclusion

• ELGIEQUIP is technically consolidating with improving momentum and strong fundamentals.
• Entry near ₹480–₹490 is attractive on confirmation of support; watch for breakout above ₹540.
• Investors may consider holding for long-term growth; short-term traders should monitor volume and resistance levels.