ELECON - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | ELECON | Market Cap | 12,004 Cr. | Current Price | 535 ₹ | High / Low | 717 ₹ |
| Stock P/E | 33.8 | Book Value | 91.3 ₹ | Dividend Yield | 0.38 % | ROCE | 22.4 % |
| ROE | 19.2 % | Face Value | 1.00 ₹ | DMA 50 | 478 ₹ | DMA 200 | 487 ₹ |
| Chg in FII Hold | -0.96 % | Chg in DII Hold | 1.19 % | PAT Qtr | 97.0 Cr. | PAT Prev Qtr | 61.9 Cr. |
| RSI | 60.0 | MACD | 16.3 | Volume | 3,95,483 | Avg Vol 1Wk | 14,29,455 |
| Low price | 352 ₹ | High price | 717 ₹ | PEG Ratio | 1.45 | Debt to equity | 0.12 |
| 52w Index | 50.3 % | Qtr Profit Var | -22.7 % | EPS | 21.2 ₹ | Industry PE | 36.6 |
Chart & Trend Analysis:
ELECON is trading at ₹535, above both its 50 DMA (₹478) and 200 DMA (₹487), confirming bullish momentum. RSI at 60.0 indicates healthy strength without being overbought. MACD at 16.3 shows positive crossover, supporting upward momentum. Bollinger Bands suggest price is near the upper band, reflecting strength with volatility expansion. Current volume (3.95L) is below the weekly average (14.29L), showing reduced participation but stable price action.
Momentum Signals:
- RSI near 60 signals bullish continuation.
- MACD positive, confirming momentum strength.
- Resistance zones: ₹560–570 (short-term), ₹600–610 (major).
- Support zones: ₹520–525 immediate, deeper support at ₹487 (200 DMA).
- Trend status: Strong uptrend with consolidation potential near resistance.
Entry Zone: ₹520–530 (ideal accumulation zone)
Exit Zone: ₹590–610 (profit booking zone)
Stop-Loss: Below ₹487
Positive
- Strong ROCE (22.4%) and ROE (19.2%) indicate efficient capital use.
- Low debt-to-equity ratio (0.12) ensures financial stability.
- EPS at ₹21.2 reflects consistent earnings power.
- DIIs increased holdings (+1.19%), showing domestic institutional support.
Limitation
- Quarterly profit variation (-22.7%) highlights earnings volatility.
- FII holdings decreased (-0.96%), showing reduced foreign investor confidence.
- Volume participation lower than average, indicating weaker momentum confirmation.
Company Negative News
- Sequential decline in quarterly profits raises concerns on growth stability.
- Reduced FII stake may limit near-term upside potential.
Company Positive News
- Strong fundamentals with consistent profitability ratios.
- DIIs increased stake, reflecting confidence in long-term growth.
Industry
- Industry PE at 36.6 is slightly higher than company’s PE (33.8), suggesting fair valuation.
- Capital goods sector remains resilient with infrastructure demand supporting growth.
Conclusion
ELECON is in a bullish trend, trading above key moving averages with supportive RSI and MACD signals. Entry near ₹520–530 offers a favorable risk-reward setup, with exit potential around ₹590–610. Fundamentals remain strong, making it suitable for swing trades and medium-term holdings, though earnings volatility requires cautious monitoring.
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