ESCORTS - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.0

📊 Chart Patterns & Trend: ESCORTS is consolidating near its 50 DMA (3,666 ₹) and 200 DMA (3,535 ₹). Support lies around 3,550–3,580 ₹, while resistance is seen near 3,700–3,750 ₹. The stock is in a sideways consolidation phase with mild bearish bias.

📈 Moving Averages: Current price (3,624 ₹) is slightly below the 50 DMA but above the 200 DMA, showing short-term weakness but long-term support.

📉 RSI: At 45.8, RSI indicates neutral-to-weak momentum, leaning toward oversold territory.

📉 MACD: Negative (-3.86) reflects mild bearish momentum, suggesting caution until a crossover occurs.

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

📊 Volume Trends: Current volume (79,839) is higher than the 1-week average (50,349), showing increased participation and potential accumulation.

🎯 Entry Zone: 3,550–3,580 ₹ (near support and oversold RSI)

🎯 Exit Zone: 3,700–3,750 ₹ (near resistance and upper consolidation band)

Positive

• Strong EPS at 209 ₹ reflects robust earnings capability.
• Low debt-to-equity ratio (0.01) ensures financial stability.
• Dividend yield at 0.75% provides income appeal.
• Quarterly PAT growth from 315 Cr. to 321 Cr. shows steady earnings momentum.
• Both FII (+0.05%) and DII (+0.37%) holdings increased, reflecting investor confidence.

Limitation

• P/E ratio (33.4) is slightly above industry average (34.2), suggesting fair valuation but limited upside.
• ROCE (13.7%) and ROE (12.8%) are moderate compared to peers.
• RSI and MACD show weak momentum, limiting short-term bullish signals.

Company Negative News

• Quarterly profit variation is modest at 6.12%, indicating limited growth acceleration.
• Stock trading below 50 DMA shows short-term weakness.

Company Positive News

• EPS strength and consistent PAT growth highlight financial resilience.
• Strong institutional support with both FII and DII holdings increasing.
• Volume spike above average suggests accumulation interest.

Industry

• Industry P/E at 34.2 indicates sector is moderately valued.
• Tractor and agri-machinery demand expected to remain stable with rural growth and infrastructure push.

Conclusion

⚖️ ESCORTS is in a consolidation phase with neutral-to-weak momentum. Entry near 3,550–3,580 ₹ offers favorable risk-reward, while exits around 3,700–3,750 ₹ are optimal. Watch for MACD crossover and sustained volume strength to confirm a breakout from consolidation.