Indoco Remedies Limited (INDOCO) Stock - Complete Technical Analysis - Sep 27, 2024

Indoco Remedies Technical Analysis: Key Levels and 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. Indoco Remedies Limited (INDOCO) is currently trading at 357.05, approximately 14% below its 52-week high of 415.0, which was reached on January 20, 2024, and about 25% above its 52-week low of 286.6 recorded on June 4, 2024. The stock exhibits a P/E ratio of 34.1, a dividend yield of 0.42%, and returns on capital employed (ROCE) and equity (ROE) at 11.9% and 10.0%, respectively, indicating a moderate valuation and profitability.

From a technical perspective, the Average Directional Index (ADX) is at 32.83, suggesting a strong trend in the stock's movement. The Relative Strength Index (RSI) is around 43.94, indicating that the stock is currently in a neutral range, but close to oversold territory. The Stochastic indicator is significantly low at 12.2, suggesting potential for a bullish reversal if buying interest increases.

The stock's moving averages show a bearish bias in the short-term, with the 10-day EMA at 367.83 and the 20-day EMA at 366.61, both above the current price. This signals resistance in the near term, while the significant support can be observed around 349, which aligns with several pivot levels.

Traders should watch for a potential bounce near this support level, which could provide a buying opportunity if confirmed by increasing volume and bullish momentum. If the stock can reclaim the 370 level, it might attract more buyers and move toward higher resistance levels around 383 and above. For a cautious approach, traders should keep an eye on the MACD level, which is positive at 3.72, indicating potential bullish momentum if the price moves higher.