Swaraj Engines Limited (SWARAJENG) Stock - Complete Technical Analysis - Sep 30, 2024

Unlocking Potential: Technical Analysis of Swaraj Engines Limited (SWARAJENG) Stock

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. Swaraj Engines Limited is currently trading at 3202, showcasing a notable performance as it is 7.71% below its 52-week high of 3470, achieved on August 27, 2024, and 66.94% above its 52-week low of 1918.3 from September 29, 2023. The stock's current P/E ratio stands at 27.7, reflecting investor confidence, while the dividend yield of 2.97% provides attractive income potential.

Analyzing technical indicators reveals the stock is showing signs of consolidation with an Inside Candle pattern formed on September 26, indicating potential indecision in the market. Key support levels are observed around 3170, which aligns with the lower range of the recent Inside Candle, while resistance is noted near 3275, the parent high of the pattern. The Average Directional Index (ADX) at approximately 19 suggests a weak trend, implying traders should remain cautious.

The RSI is currently at 46.6, hinting at a neutral stance and potential upward momentum if it crosses above 50. Meanwhile, MACD is at 14.18, indicating bullish sentiment, although it has yet to cross above the signal line. The Stochastic RSI is quite low at 3.59, suggesting the stock may be oversold, which could present a buying opportunity if other indicators align.

Overall, traders should keep an eye on the support level at 3170 and watch for any breakout above 3275, which may signal a new upward trend. As the stock approaches its resistance levels, monitoring volume will be crucial to gauge potential price movements.