Data Patterns (India) Limited (DATAPATTNS) Stock - Complete Technical Analysis - Sep 27, 2024

Bearish Trend Analysis of Data Patterns (India) Limited Technical Insights for Traders

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. In today's technical analysis, we focus on Data Patterns (India) Limited, currently trading at 2,385, which is approximately 34.8% below its 52-week high of 3,655 reached in July 2024, and 37.36% above its 52-week low of 1,735 from October 2023.

The stock exhibits a high P/E ratio of 70.8, indicating a potentially overvalued situation, particularly as its ROCE stands at 19.7% and ROE at 14.3%. The current support level is around 2,430, confirmed by classic and Fibonacci pivots, with additional support around 2,429.35, while resistance is evident near the 2,922.5 mark, indicating strong selling pressure above this level.

Technical indicators suggest a bearish trend. The RSI at 23 indicates that the stock is oversold, signaling potential caution for buyers. The MACD is negative, reflecting the downtrend momentum, and the Awesome Oscillator also points to bearish momentum. The Average Directional Index, at 33.08, suggests a strong trend, which further emphasizes the current bearish outlook.

Moving averages, particularly the 10, 20, and 30 EMAs, are positioned above the current price, signaling resistance levels that traders should be aware of. With the Hull Moving Average indicating a level of 2,418.86, the stock may face challenges in breaking above this area.

In conclusion, traders should be vigilant and consider the support around 2,430 while keeping an eye on the resistance at 2,922.5. The current technical setup indicates potential volatility, making it essential to monitor market conditions closely.