ELECON - Technical Analysis

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

Technical Rating: 3.2

Let’s unpack the technical pulse of Elecon Engineering Ltd. (ELECON) and decode its recent price behavior

📈 Trend Overview

Current Price: ₹578 is below both 50 DMA (₹617) and 200 DMA (₹581)

This shift signals a short-term trend reversal or breakdown from the bullish phase

Recent high of ₹739 adds to the view of a sharp correction underway

🧭 Trend Status: Reversing, with signs of further downside unless momentum rebuilds

📉 Momentum Indicators

RSI: 35.2 → Approaching oversold, may lead to short-term bounce

MACD: -18.3 → Bearish divergence persists

Volume: 6.44L vs 5.04L avg → Slightly higher, could be panic-led selling

Together, these suggest seller dominance, but a potential reversal setup forming soon if RSI nears 30.

📊 Moving Averages Assessment

DMA Price (₹) Commentary

50 DMA 617 Resistance overhead

200 DMA 581 Nearby ceiling for rebound

Break below both averages creates pressure zone that needs high-volume recovery to reclaim trend.

📎 Bollinger Bands Snapshot

Price likely hugging the lower band, suggesting oversold conditions

Bands expanding → signals volatility and trend breakdown

Watch for band contraction + RSI rebound to identify base formation.

📍 Trade Strategy Zones

Zone Type Price Range (₹) Commentary

Entry Zone ₹540–₹560 Potential bottoming zone if RSI stabilizes

Resistance ₹615–₹620 First wall — 50 DMA

Exit Target ₹645–₹665 If momentum rebuilds with volume support

Support Zone ₹495–₹520 Critical level to hold reversal potential

Suggested stop-loss: ₹485

🧾 Fundamental & Institutional Lens

Qtr PAT ↓ 26%, yet EPS is strong → earnings cooling off

FII ↑ 0.96%, DII ↓ 0.59% → foreign interest rising despite correction

PEG Ratio: 0.69 and low debt → valuation still appealing for long-term investors

ROE/ROCE remain solid, which may draw back buyers if technicals improve

🧭 Conclusion

ELECON has shifted into a near-term reversal, evident by its break below key moving averages, weak RSI/MACD, and expanding Bollinger bands. Traders may watch for signs of stabilization near ₹540–₹560, but only a reclaiming of ₹620+ with stronger volume will flip the bias back to bullish.

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