Gujarat State Fertilizers & Chemicals Limited (GSFC) Stock - Complete Technical Analysis - Sep 20, 2024

Gujarat State Fertilizers Stock Analysis Key Support and Resistance 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. Gujarat State Fertilizers & Chemicals Limited is currently trading at 219, which is 32.12% below its 52-week high of 322.25 and 31.77% above its 52-week low of 166. The stock features a P/E ratio of 17.1, indicating a relatively moderate valuation compared to its earnings. With a ROCE and ROE of 5.50% and 4.27% respectively, the company's returns on capital and equity are modest, which could suggest challenges in profitability.

From a technical standpoint, the RSI is near 39, signaling a potential oversold condition, while the MACD is negative, indicating a bearish trend. The Stochastic indicators also confirm weakness, suggesting selling pressure. An inside candle pattern formed recently, indicating a consolidation phase within a defined range, specifically between the parent high of 228.45 and the low of 215.75.

Key support for GSFC is observed at around 215, while resistance is seen near 228. Traders should closely monitor price action for a breakout above resistance, which could indicate potential bullish momentum, or a fall below support, which may signal further declines. The overall sentiment remains cautious, making it essential for traders to stay vigilant for shifts in market dynamics.