ELECON Reclaim 50 DEMA again!
Business Overview:
Elecon Engineering Company Ltd., incorporated in 1960, is involved in the design and manufacturing of Material Handling Equipment and Industrial Gears and also providing construction and commissioning solutions for its products.
Products and Services:
Power Transmission (79%): The company was the first to introduce modular design concept, case-hardened and ground gear technology in India.
Material Handling Equipment Solutions (21%): The company has today expanded its production to cater to diverse material handling requirements of multiple industries including steel, power, marine, chemical, cement, coal, etc.
Foundry Division: It caters to machining and foundry needs of Elecon Engineering, providing casting and machining services to several other companies other than Elecon group.
Technical View:
Elecon has been outperforming stock in the weak market, after the consistent up move till 420 it has corrected to 315-320 level at which it formed base and now breakout of that range getting ready to touch previous high of 415-420.
One can accumulate at current level for the upside till 420-450 with the stop loss of 320.
RSI above 55 and volume buildup attracted us to look at this stock.
