Shriram Properties Limited (SHRIRAMPPS) Stock - Complete Technical Analysis - Aug 30, 2024

Bearish Reversal Warning Shriram Properties (SHRIRAMPPS) Technical Analysis

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.

Let's dive into the technical analysis for Shriram Properties Limited (SHRIRAMPPS), starting with the current price, which is 136. The stock's P/E ratio stands at 30.4, indicating a premium valuation relative to its earnings. Its book value is 75, while the dividend yield is nil, suggesting no returns from dividends. The ROCE and ROE are 10.3% and 6.09% respectively, showing moderate returns on capital and equity.

Looking at the technical indicators, the Average Directional Index (ADX) is high, signaling a strong trend. The Relative Strength Index (RSI) is in the overbought zone, suggesting the stock might be due for a pullback. The Stochastic %K and Stochastic RSI are also elevated, reinforcing the overbought condition. The MACD level is positive, indicating bullish momentum, but the Awesome Oscillator and Commodity Channel Index (CCI) both suggest the stock might be overextended.

The stock has formed a Shooting Star pattern, a bearish reversal signal, with an open of 134.61, high of 139, low of 134.61, and close of 135.97. This pattern often precedes a price decline, so it's a crucial signal to watch.

In terms of moving averages, the price is trading above the Exponential Moving Averages (EMAs) for most periods, indicating a bullish trend. However, the Simple Moving Averages (SMAs) show mixed signals, with the 10-day SMA above the 20-day and 30-day SMAs, while the 200-day SMA is below the current price, suggesting the stock has been in an uptrend recently.

Support and resistance levels are key to understanding the stock's potential price movements. Classic Pivot points suggest a support level around 107.86 and resistance at 123.55, with additional resistance at 139.24. The Camarilla Pivots suggest immediate support at 107.37 and resistance at 115.99. The Fibonacci Pivots align with similar support at 101.87 and resistance at 117.56. Woodie's Pivot points indicate resistance at 136.13 and support at 104.76.

The Average True Range (ATR) is currently high, reflecting increased volatility, which may impact trading decisions.

In summary, while the stock shows strong bullish signals, the high RSI, elevated stochastic indicators, and the bearish Shooting Star pattern suggest caution. Traders should monitor these signals closely and consider potential pullbacks or reversals in the coming days.