ESCORTS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.8
| Stock Code | ESCORTS | Market Cap | 32,275 Cr. | Current Price | 2,885 ₹ | High / Low | 4,180 ₹ |
| Stock P/E | 23.7 | Book Value | 1,108 ₹ | Dividend Yield | 0.97 % | ROCE | 15.9 % |
| ROE | 12.0 % | Face Value | 10.0 ₹ | DMA 50 | 3,128 ₹ | DMA 200 | 3,366 ₹ |
| Chg in FII Hold | 0.46 % | Chg in DII Hold | -0.54 % | PAT Qtr | 325 Cr. | PAT Prev Qtr | 403 Cr. |
| RSI | 36.6 | MACD | -74.9 | Volume | 2,35,288 | Avg Vol 1Wk | 1,49,626 |
| Low price | 2,710 ₹ | High price | 4,180 ₹ | PEG Ratio | 0.90 | Debt to equity | 0.01 |
| 52w Index | 11.9 % | Qtr Profit Var | 14.2 % | EPS | 215 ₹ | Industry PE | 25.6 |
Chart & Trend Analysis:
ESCORTS is trading at ₹2,885, below both its 50 DMA (₹3,128) and 200 DMA (₹3,366), confirming bearish momentum. RSI at 36.6 indicates weak momentum, nearing oversold territory. MACD at -74.9 shows strong bearish crossover. Bollinger Bands are widening, reflecting volatility expansion. Current volume (2.35L) is higher than weekly average (1.49L), suggesting active selling pressure.
Momentum Signals:
- RSI near 35 signals weak momentum with possible rebound from oversold levels.
- MACD strongly negative, confirming bearish trend.
- Resistance zones: ₹3,100–3,150 (50 DMA), ₹3,350–3,370 (200 DMA).
- Support zones: ₹2,850 immediate, deeper support at ₹2,710 (recent low).
- Trend status: Bearish consolidation; reversal only if price sustains above 50 DMA.
Entry Zone: ₹2,850–2,880 (risk-managed accumulation)
Exit Zone: ₹3,100–3,150 (profit booking zone)
Stop-Loss: Below ₹2,710
Positive
- EPS at ₹215 reflects strong earnings power.
- Low debt-to-equity ratio (0.01) ensures financial stability.
- Dividend yield of 0.97% adds shareholder value.
- FII holdings increased (+0.46%), showing foreign investor confidence.
Limitation
- Stock trading below both 50 DMA and 200 DMA indicates technical weakness.
- ROCE (15.9%) and ROE (12.0%) are moderate compared to peers.
- RSI at 36.6 signals weak momentum.
Company Negative News
- Quarterly PAT declined (₹325 Cr vs ₹403 Cr), showing earnings pressure.
- DII holdings decreased (-0.54%), reflecting reduced domestic institutional confidence.
Company Positive News
- Quarterly profit variation (+14.2%) highlights earnings growth momentum.
- FII inflows reflect continued global investor interest.
Industry
- Industry PE at 25.6 is close to company’s PE (23.7), suggesting fair valuation.
- Tractor and farm equipment sector remains cyclical, dependent on monsoon and rural demand.
Conclusion
ESCORTS is consolidating with bearish bias, trading below key moving averages. Entry near ₹2,850–2,880 offers limited risk-reward, with exits around ₹3,100–3,150. Fundamentals remain stable, but weak technicals and declining profits suggest caution for short-term traders until a breakout above 50 DMA confirms reversal.
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