Shakti Pumps (India) Limited (SHAKTIPUMP) Stock - Complete Technical Analysis - Sep 30, 2024

Shakti Pumps Technical Analysis: Is It Time to Buy

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.

Shakti Pumps (India) Limited is currently trading at 4,271, reflecting a robust performance with the stock being 18.69% below its 52-week high of 5,075.45 and an impressive 407.48% above its 52-week low of 813.20. The stock shows strong fundamentals, including a high P/E ratio of 41.9, a book value of 337, and ROCE and ROE values of 29.5% and 22.6%, respectively, indicating efficient use of capital and good profitability.

On the technical front, the Average Directional Index (ADX) at 20.11 suggests a weak trend, while the Relative Strength Index (RSI) at 51.56 points to a neutral position, indicating potential for upward movement if momentum builds. The Stochastic %K value of 36.72 suggests that the stock is nearing oversold territory, indicating a possible buying opportunity. The MACD is currently negative, reflecting bearish sentiment, yet the Awesome Oscillator is also negative, suggesting that downward momentum may be fading.

Support levels are noted around 4,075 and 4,051, while resistance is seen at 4,575 and 4,946. A close watch on price action around these levels will be critical. The stock's moving averages are indicating mixed signals, with the 10-period EMA above the 20 and 30-period SMAs, signaling a potential bullish crossover. The Ichimoku Base Line at 4,256.9 is another key level to monitor, as price movements around this line can dictate the short-term trend.

In conclusion, while Shakti Pumps presents strong fundamentals, traders should remain vigilant, watching for breakouts above resistance levels or bounces off support to gauge future direction.