Ester Industries—Stock in Spotlight for Traders

  • Stock Market Analysis

About the company:

Ester Industries Ltd (NS: ESTR ) manufactures polyester films, polyester chips, specialty polymers, and engineering plastic compounds. Headquartered at Gurgaon, the company’s manufacturing facilities are located at Khatima, Uttarakhand. The stock is presently trading close to an all-time high / 52- week high level. The 52-week high and 52-week low range is Rs 165 and Rs 60, respectively.

Technical observations:

One week time frame: (Fig 1)

On the weekly time frame, Ester Industries has formed an Ascending Triangle pattern. The share will mostly break out of this pattern this week. Above-average volumes support the movement. The Relative Strength Index (or RSI) line is above 60, and the Moving Average Convergence Divergence (or MACD) line is in the process of crossing the signal line from below. These indicators also support the stock’s positive momentum.
E1
One day time frame: (Fig 2)

The scrip has formed a Cup and Handle pattern with heavy volumes at each corner of the design on a daily time frame. The RSI is above 65, and the MACD line has crossed the signal line below, signaling bullish momentum. Note that the stock today pulled back and closed at a critical support level of Rs 155. We expect a bounce back from this level, keeping our positive view intact on the stock for the medium term.
E3
One hour time frame: (Fig 3)

On the hourly chart, the stock broke out from a resistance level of Rs 151 on August 4 and made an all-time high of Rs 164.30. Heavy volumes accompanied the movement. Since then, the share has pulled back, and we expect it to take support at the 20-day Exponential Moving Average (or EMA) line.
E3

Conclusion:

We believe the stock maintains a bullish trend and moves higher in the short, medium, and long term. Short-term traders should trade by keeping Rs 151 as stop loss on a daily closing basis. Positional traders should keep a stop loss of Rs 132 on a daily closing basis (previous swing low on weekly charts.)

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100
  • ketan jain @ketan jain
    Stop Loss hit.
    Like 0
  • Sandip Meshram @Sandip Meshram
    entered today, thanx for ur analysis, appreciated 👍👍
    Like 0

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