Suraj Estate Developers Limited (SURAJEST) Stock - Complete Technical Analysis - Sep 13, 2024

Suraj Estate Developers Stock Analysis Is SURAJEST Ready for a Breakout Key Levels Explained

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. Suraj Estate Developers Limited (SURAJEST) is currently trading at 746, and with a P/E ratio of 41.2, it indicates the stock is priced at a premium relative to its earnings. Despite this, its strong ROCE of 25.3% and ROE of 23.9% show efficient use of capital and profitability, making it an attractive pick fundamentally. However, the dividend yield is quite low at 0.13%.

From a technical standpoint, the RSI at 48.39 suggests that the stock is in neutral territory and not heavily overbought or oversold. The Stochastic indicators, particularly Stochastic RSI at 0.0 and Stochastic %K at 17.83, indicate a potential oversold condition, signaling that the stock may be primed for a reversal. Meanwhile, the ADX level of 22.66 reflects a weak trend, indicating that momentum in either direction is lacking at the moment. The MACD level, showing positive divergence at 15.53, indicates that bullish momentum is building, although it's important to note the stock has been in a corrective phase as reflected by its momentum indicator at -51.35.

The price is hovering around key Exponential Moving Averages (EMA), particularly the 30-day EMA at 746.05, suggesting this level could act as a support. There is stronger support near the 50-day EMA at 698.83, providing a potential entry point for long-term investors. On the resistance side, the 20-day EMA at 764.4 and the Ichimoku Base Line at 758.5 may present near-term hurdles for upward movement. Additionally, the Awesome Oscillator at 13.23 further supports the likelihood of bullish continuation, but caution is advised due to the weak ADX.

Chart patterns suggest a consolidation phase, with the possibility of a breakout if volume picks up. The stock is currently 7.07% below its 52-week high, and a bullish breakout above resistance levels could push the stock toward new highs, making it a strong candidate for a momentum trade.

In conclusion, SURAJEST is fundamentally strong with positive long-term prospects, but short-term traders should watch for breakout signals above resistance levels or wait for better entry points near support.