Unlocking Potential: A Deep Dive into Elecon Engineering's Chart

Welcome to today's analysis of ELECON , where we explore a compelling trading scenario fuelled by recent stock activities.

📊 The Breakout Story
  • Elecon Engineering hit a record high in its previous Friday trading session, breaking past its former resistance with impressive volume. The surge was marked by a robust breakout candle, signalling strong buyer interest.
  • Following this significant high, the stock opened the today with a sizeable gap up. Interestingly, the subsequent movement saw the stock retrace downwards on notably lower volumes. This behavior is typically indicative of a 'retest' of the breakout level.
  • The retest scenario presents a potential buying opportunity at a specific demand zone identified on the 15-minute timeframe. This strategy focuses on the Rally-Base-Rally pattern, suggesting a tactical entry around 1130.

📈 Strategic Trade Setup
  • Entry Point: The proposed entry is at the Rally-Base-Rally demand zone, calculated around the 1130 level.
  • Stop Loss: A stop loss is advised at a 3% decrease from the entry point to limit potential downside.
  • Profit Target: The initial target for taking profits is set at a 10% gain from the entry level, offering a risk-reward ratio of over 1:3.
  • Management Strategy: To maximize gains, a trailing stop loss is recommended, which allows profits to run while safeguarding against sudden downturns.

📉 Recent Financial Highlights
Elecon Engineering has recently announced its consolidated financial results for the quarter ending March 2024:
  • Net Sales: Rs. 564.62 crore, a surge of 32.99% compared to Rs. 424.54 crore in March 2023.
  • Net Profit: Rs. 103.65 crore, up 52.55% from Rs. 67.95 crore in the same quarter last year.
  • EBITDA: Rs. 148.40 crore, reflecting a growth of 47.43% from Rs. 100.66 crore in March 2023.

These financial metrics not only reflect a robust growth trajectory but also bolster the stock’s attractiveness in the eyes of potential investors and traders.

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This analysis is purely for educational purposes and does not constitute a trading or investment recommendation. Please note that I am not a SEBI registered analyst.