Surya Roshni Limited (SURYAROSNI) Stock - Complete Technical Analysis - Dec 19, 2024

"Surya Roshni Stock Analysis: Can It Recover After a 32% Drop Technical Insights & Support Levels

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions. Surya Roshni Limited (SURYAROSNI), currently priced at 565.70, is trading significantly below its 52-week high of 841.65, reflecting a 32.79% drop. However, it remains 20.99% above its 52-week low of 467.55. This suggests that while the stock has seen a pullback, it has not yet reached its lowest point. With a P/E ratio of 19.1, it is fairly valued relative to its earnings, and its Book Value of 208 suggests decent intrinsic value. Its Dividend Yield of 0.44% offers moderate returns for income-seeking investors. The companys operational efficiency is highlighted by a ROCE of 20.8% and a ROE of 16.2%, both of which are strong.

Technically, the stock is showing some bearish trends. The RSI at 39.89 points to an oversold condition, implying a potential reversal if the buying momentum builds up. The ADX of 18.62 suggests a weak trend, meaning any possible reversal could take time to develop. Meanwhile, the MACD is negative, indicating continued bearish pressure. On the other hand, the Stochastic RSI at 63.36 suggests some buying interest, which could offer short-term relief.

Support levels lie around 560, with further support around 550, while resistance is at 579. A break above 580 could signal a potential recovery, but until then, the stock may face continued struggles to move higher. The 10-day and 20-day EMAs serve as immediate resistance, reinforcing the bearish outlook. Traders should wait for confirmation of a break above resistance or signs of stabilization near support levels before considering entering.

Overall, the stock shows signs of a possible short-term rebound, but caution is advised due to the prevailing bearish trend and volatility. A more stable upward movement will require the stock to break and sustain above its immediate resistance levels.