Is eClerx Services ready to scale newer highs in near future?

eClerx Services Ltd provides data analytics and customised process solutions to global enterprise clients from its offshore delivery centres in India. The portfolio of services comprises data analytics, operations management, data audits, metrics management, and reporting services. The company currently offers services to clients in the financial services along with retail & manufacturing industries and has a global presence.

The stock of eClerx Services is trading near its all-time high. It surged nearly 4 per cent today and has made a V-shaped recovery on the weekly timeframe. The stock trades above all the short and long-term moving averages. The RSI is in bullish territory and the ADX is indicating a strong uptrend. Elder Impulse System gives a fresh buy signal. Along with this, Mansfield Relative Strength indicator shows the outperformance of the stock against the broader market. The MACD histogram is rising steadily, which suggests that the bullishness would continue. Moreover, the stock fits perfectly under CANSLIM characteristics.

The stock performed exceptionally well in 2021 and has delivered over 186 per cent returns to its investors during the year. In the last quarter, the stock gave decent returns of about 15 per cent. Not only this, but the stock has also outperformed its peers as well as the broader market during this period.

This midcap company, with a market cap of Rs 8,542, is one of the most promising companies in its sector. The company is largely held by the promoters with a stake of a little over 50 per cent. The foreign investors hold about a 16 per cent stake while the mutual fund houses include this stock in their portfolio and have a stake of about 18 per cent. The retail portion has 13 per cent of the company’s shares. The company has been a consistent performer in reporting steady growth in revenues & profits, and as a result, it is strongly backed by the institutions. Being a technically strong stock, it deserves to be included in traders’ watchlists.