Godrej Industries Limited (GODREJIND) Stock - Complete Technical Analysis - Sep 26, 2024

Godrej Industries Limited Technical Analysis: Key Levels & Patterns 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. Today, let's dive into the technical analysis for Godrej Industries Limited, trading currently at 1,240. Analyzing the broader trend, we see the stock has recently approached a significant resistance level around 1,263.95, where a shooting star pattern has formed, indicating a potential bearish reversal. The stock is currently 5.87% below its 52-week high of 1,314, reached earlier this month, and impressively 125.70% above its 52-week low of 548 from last year.

Looking at various technical indicators, the Average Directional Index (ADX) suggests a strong trend, currently at 71.32, indicating that momentum is strong. The Relative Strength Index (RSI) is at 76.01, indicating that the stock may be overbought, which aligns with our observation of a potential reversal. The Stochastic indicator is at 39.76, showing that it might be approaching oversold territory, providing a potential opportunity for buyers if the price dips further.

Moving averages provide insight into support levels, with the 10-day EMA at 1,216.02, acting as a near-term support level. A notable bullish engulfing pattern also appeared recently, suggesting that buying pressure is still present. The commodity channel index (CCI) at 82.51 indicates the stock is potentially overbought but could still see upward movement if momentum holds.

We also noted an inside candle pattern forming recently, with the stock trading within a range of 1,269 and 1,221.5, which might indicate consolidation before a breakout. The average true range (ATR) is relatively high at 77.85, suggesting increased volatility, so traders should be prepared for potential swings. Overall, while there are bullish signals, traders should watch for confirmation of price action near the key levels before making any significant moves.