Kansai Nerolac Paints Limited (KANSAINER) Stock - Complete Technical Analysis - Sep 26, 2024

Kansai Nerolac Paints Limited Technical Analysis: Key Support & Resistance 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. Today, we delve into the technical analysis of Kansai Nerolac Paints Limited, currently trading at 304.05. The stock has shown some bearish patterns recently, including a Bearish Engulfing and an Evening Star formation, indicating potential weakness in price momentum. The Average Directional Index (ADX) is at 26.24, suggesting a trending market, while the Relative Strength Index (RSI) sits at 50.84, reflecting a neutral stance. However, with a Stochastic %K value of 29.91, we are entering oversold territory, potentially hinting at a short-term rebound.

Support levels are critical to watch. The Classic Pivot point suggests that 297.17 is a significant support level, with the first major support at 284.33. Should the price drop below these levels, we might see further downside. Conversely, resistance levels can be identified around the recent high of 313.00, with additional resistance at 309.33. If the stock can break above these levels, we could see a more bullish outlook.

Additionally, the moving averages indicate a bearish trend, with the stock trading below both the 10 and 20-period Exponential Moving Averages (EMA) at 306.1 and 304.96, respectively. The momentum indicator shows a negative value, suggesting that selling pressure is dominating the market.

In summary, traders should remain cautious, as bearish patterns and negative momentum suggest potential downward movement. However, support at 297.17 and resistance at 313.00 will be crucial in determining the next direction for Kansai Nerolac Paints Limited.