ERIS - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.6

📊 Chart Patterns & Trend: ERIS is consolidating near its 50 DMA (1,603 ₹) and 200 DMA (1,564 ₹). Support lies around 1,540–1,560 ₹, while resistance is seen near 1,600–1,620 ₹. The stock is in a sideways consolidation phase with weak momentum.

📈 Moving Averages: Current price (1,577 ₹) is slightly below the 50 DMA but above the 200 DMA, showing indecision and consolidation.

📉 RSI: At 44.5, RSI indicates neutral-to-weak momentum, leaning toward oversold territory.

📉 MACD: Negative (-10.2) reflects bearish bias, suggesting caution until a crossover occurs.

📊 Bollinger Bands: Price is near the lower band, implying limited downside and potential rebound if buying interest emerges.

📊 Volume Trends: Current volume (18,565) is significantly below the 1-week average (49,024), showing weak participation and lack of strong momentum.

🎯 Entry Zone: 1,540–1,560 ₹ (near support and oversold RSI)

🎯 Exit Zone: 1,600–1,620 ₹ (near resistance and upper consolidation band)

Positive

• Quarterly PAT surged from 100 Cr. to 150 Cr., showing strong earnings growth.
• DII holdings increased by 1.18%, reflecting domestic institutional confidence.
• EPS at 20.7 ₹ indicates steady earnings capability.

Limitation

• High P/E (76.2) compared to industry average (30.6) suggests significant overvaluation.
• Low ROCE (6.86%) and ROE (3.02%) highlight weak capital efficiency.
• Debt-to-equity ratio at 0.79 is relatively high compared to peers.
• PEG ratio (-1.76) indicates poor alignment between growth and valuation.

Company Negative News

• FII holdings decreased by 1.18%, showing reduced foreign investor confidence.
• Weak trading volume reduces short-term momentum signals.

Company Positive News

• Quarterly profit variation at 432% highlights strong earnings momentum.
• 52-week performance index at 59% shows resilience compared to broader market.

Industry

• Industry P/E at 30.6 indicates sector is moderately valued compared to ERIS’s high valuation.
• Pharmaceutical sector demand expected to remain stable with healthcare expansion.

Conclusion

⚖️ ERIS is in a consolidation phase with weak momentum. Entry near 1,540–1,560 ₹ offers favorable risk-reward, while exits around 1,600–1,620 ₹ are optimal. Watch for volume recovery and MACD crossover to confirm a reversal from consolidation.