Elecon Engineering jumps 6.9% as Nifty, Bank Nifty slip

Elecon Engineering closed 6.91% higher against a weak market, closed near a two-month high. Support at 400 and resistance at 500 and 580 in focus. Elecon Engineering Company Limited (

) rallied as much as 6.82% intraday today and closed 6.91% higher, even as the broader market stayed weak. Nifty and Bank Nifty both traded at their lowest levels in about 24 weeks, or three and a half months. The stock had been moving in a broadening pattern since late July, printing higher highs and lower lows together. Volatility has increased after the previous swing. Today's move cleared the previous high, and the close is near a two-month high. With volatility rising, the 400 level may act as key support. On the upside, 580 may act as key resistance, and the psychological 500 mark may also act as resistance in the near term. For the long term, the 352 to 346 zone may act as major support. Price action near these levels will show whether the breakout holds or fades. A close back inside the earlier range would weaken the breakout, while acceptance above the previous high would keep it valid. Traders may also track volume during the next sessions. Disclaimer: I, Akhilesh Jat (SEBI RA Reg. No. INH000016649), do not hold any position in the stock discussed. This content is informational, not a recommendation. Investments in securities are subject to market risks. Read all related documents carefully before investing.