ELECON - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.7

📊 Analysis Summary

ELECON is a fundamentally strong stock with excellent ROE/ROCE, low debt, and solid earnings growth. However, its technical indicators are currently bearish, with a low RSI and negative MACD suggesting short-term weakness. The valuation is attractive compared to the industry, making it a good candidate for swing trading — but only after signs of a technical reversal.

🔍 Technical Indicators

RSI (35.2): Oversold — potential for rebound, but no confirmation yet.

MACD (-18.3): Bearish — short-term downtrend in play.

Price vs DMA

Current Price (₹578) is below 50 DMA (₹617) and just under 200 DMA (₹581) — weak technical setup.

Volume: Above weekly average — selling pressure likely.

📈 Fundamental Snapshot

P/E (28.9) vs Industry PE (57.2): Undervalued — attractive pricing.

PEG Ratio (0.69): Good — growth is reasonably priced.

ROE (23.0%) & ROCE (28.5%): Excellent — strong capital efficiency.

EPS (₹23.0) vs Price (₹578): Reasonable earnings base.

Qtr Profit Growth (+46.6%): Strong — earnings momentum.

FII Holding ↑ (+0.96%), DII Holding ↓ (-0.59%)**: Mixed institutional sentiment.

Debt to Equity (0.09): Very low — strong financial health.

Dividend Yield (0.35%): Modest — not a swing factor.

✅ Entry Strategy (If Not Holding)

Optimal Entry Price: ₹560–₹570 range, near support zone.

Wait for RSI to rise above 40 and MACD to flatten or turn positive.

Avoid entering until signs of reversal are visible.

🚪 Exit Strategy (If Already Holding)

Exit near ₹720–₹739, close to 52-week high resistance.

If price drops below ₹550, consider stop-loss at ₹530 to manage risk.

⚖️ Final Verdict

ELECON is a value-rich swing trade with strong fundamentals but weak technicals. It’s best suited for traders who can wait for a technical rebound before entering. If already holding, the long-term structure supports a move toward previous highs, but short-term caution is necessary.

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