We have seen a big fall in the stock market on last Friday, But ELECTCAST stock moved more than 6.50 percentage on last trading session to close at current market price of 200, this indicates strong bullishness in the stock. That makes ELECTCAST share top Breakout pick in intradaystockstoday.com watchlist. On July 19 when Sensex fell by 755.48 points (0.93%) to 80,587.98 and Nifty by 275.20 points (1.11%) to 24,525.60. During this drop, there was sharp contrast in terms of market activity i.e, 756 shares went up, 2,618 shares went down whereas 74 shares were not affected at all. The top gainers in Nifty were Infosys, ITC, LTI, Mindtree, Asian Paints and SBI while Tata Steel, JSW Steel, Hindalco, BPCL and Tech Mahindra emerged as the biggest losers.
Also Read our previous post " Suzlon Energy Near Breakout: Upcoming Targets for July 2024".
Channel Pattern formed in Electrosteel Castings Limited (ELECTCAST)
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| Channel Pattern formed in ELECTCAST |
On Analyzing the Latest Chart of Electrosteel Castings Limited share we can see a Channel formation in Daily time frame. We all know that we can see a breakout if price level breaks the channel, here major Resistance levels are 205 to 208 price levels. And support area ranges from 140 to 136 range. You see the major levels and Supports marked in the candle stick chart as shown above.
Upcoming Targets for Electrosteel Castings Limited for 2024
If price breaks above 208 price range, we can expect a upcoming targets of 215 and 230 in upcoming trading sections. You can consider this for Short term and Intraday trading. For intraday trading you can expect 1% as first target and 3% as second target.
Stoploss price levels for Electrosteel Castings Limited for 2024
Stoploss can be considered below 135 price levels. If market closed below 135 price level, which is below the Major Support level, then you can come out of this stock to avoid risk and further fall in the stocks. You can buy this stock and average till the mentioned support level and stoploss to reduce the risk.
Have you read about " Eicher Motors Share price Near Breakout, Major levels Marked for July 2024".
Fundamental Analysis Electrosteel Castings Limited
The stock has a P/E of 16.1, so it is at a decent valuation against its earnings. The book value of the company is ₹86.0, with ROCE at 16.0% and ROE at 15.6%, thus clearly showcasing the efficiency of the company in using capital and shareholders' equity effectively. The EPS is ₹12.4, and at a PEG ratio of 0.50, the stock does indicate potential growth at an attractive valuation. Besides, its debt-to-equity ratio is 0.46, indicating a very balanced approach toward leverage, while a price-to-sales ratio of 1.60 points to a fairly reasonable market valuation vis-Ã -vis its sales. ELECTCAST, therefore, does show decent fundamentals with growth potential and efficient capital management on all counts.
Conclusions
The above analysis clearly establishes that the impressive performance of ELECTCAST in a falling market, underlines its bullish momentum and potential as one of the top breakout picks. Its surge over 6.5 percent, besides the positive technical set-up with resistance at ₹205-₹208 and support at ₹136-₹140, is indicative of very promising short-term targets at ₹215 and ₹230. Also discussed about the decent fundamentals for this stock.
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