⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ELECON - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.0
| Stock Code | ELECON | Market Cap | 9,014 Cr. | Current Price | 402 ₹ | High / Low | 717 ₹ |
| Stock P/E | 24.2 | Book Value | 85.8 ₹ | Dividend Yield | 0.51 % | ROCE | 29.1 % |
| ROE | 22.6 % | Face Value | 1.00 ₹ | DMA 50 | 454 ₹ | DMA 200 | 526 ₹ |
| Chg in FII Hold | -0.22 % | Chg in DII Hold | 0.35 % | PAT Qtr | 61.9 Cr. | PAT Prev Qtr | 78.9 Cr. |
| RSI | 39.7 | MACD | -23.9 | Volume | 3,92,788 | Avg Vol 1Wk | 4,80,588 |
| Low price | 348 ₹ | High price | 717 ₹ | PEG Ratio | 0.48 | Debt to equity | 0.12 |
| 52w Index | 14.6 % | Qtr Profit Var | -32.7 % | EPS | 22.5 ₹ | Industry PE | 35.4 |
📈 Technical Analysis
- Chart Patterns: Stock has corrected from 717 ₹ highs and is consolidating near 402 ₹, showing weakness but holding above major support levels.
- Moving Averages: Current price (402 ₹) is below 50 DMA (454 ₹) and 200 DMA (526 ₹), confirming bearish sentiment.
- RSI: At 39.7, the stock is close to oversold territory, suggesting potential for a rebound.
- MACD: Negative (-23.9), reinforcing bearish momentum.
- Bollinger Bands: Price is near the lower band, signaling oversold conditions but risk of breakdown.
- Volume Trends: Current volume (3,92,788) is lower than 1-week average (4,80,588), showing reduced participation.
📊 Momentum & Signals
- Short-Term Momentum: Weak, but RSI suggests potential for technical bounce.
- Support Zones: 390 ₹ (near-term), 348 ₹ (major support).
- Resistance Zones: 454 ₹ (50 DMA), 526 ₹ (200 DMA), 560 ₹ (trendline resistance).
- Entry Zone: 390–400 ₹ if RSI stabilizes.
- Exit Zone: 454–526 ₹ on rebound; strict stop-loss below 390 ₹.
- Trend Status: Stock is bearish but showing signs of consolidation near support.
✅ Positive
- Strong fundamentals with ROCE (29.1 %) and ROE (22.6 %) indicating efficient capital use.
- Low debt-to-equity ratio (0.12) shows financial stability.
- PEG ratio at 0.48 suggests growth potential at reasonable valuation.
- EPS at 22.5 ₹ supports earnings strength.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA indicates weak technical strength.
- Quarterly PAT declined (61.9 Cr. vs 78.9 Cr.), showing earnings pressure.
- Dividend yield at 0.51 % is modest, offering limited income support.
📉 Company Negative News
- Quarterly profit variance (-32.7 %) highlights declining earnings momentum.
- FII holdings decreased (-0.22 %), showing reduced foreign investor confidence.
📈 Company Positive News
- DII holdings increased (+0.35 %), showing domestic institutional support.
- Strong long-term fundamentals with consistent profitability and growth.
🏭 Industry
- Industry PE at 35.4 is higher than company PE (24.2), suggesting ELECON is undervalued compared to peers.
- Sector outlook remains stable, with potential for cyclical recovery.
🔎 Conclusion
- ELECON is in a bearish consolidation phase after correction, with oversold signals appearing.
- Short-term traders may consider entry near 390–400 ₹ with exit around 454–526 ₹.
- Long-term investors may find value due to strong fundamentals and lower valuation compared to industry peers.