Shaily Engineering Plastics Limited (SHAILY) Stock - Complete Technical Analysis - Sep 30, 2024

SHAILY Engineering Plastics: Technical Analysis & Market Insights

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. Shaily Engineering Plastics Limited (SHAILY) is currently trading at approximately 1,010, which reflects a significant 47.26% drop from its 52-week high of 1,914.95, reached on October 18, 2023. On the other hand, it shows impressive growth, being 226.07% above its 52-week low of 309.70 from December 1, 2023. The stock is positioned above its key moving averages, indicating a potentially bullish trend.

The Average Directional Index (ADX) of 28.7 suggests a strong trend, while the Relative Strength Index (RSI) at 53 indicates the stock is neither overbought nor oversold, hinting at potential for further upside. The Stochastic %K at 62 supports this, reflecting momentum in the stock. Furthermore, the MACD level of 21.85 reinforces bullish sentiment as it remains above the signal line.

From a support and resistance perspective, immediate support is anticipated around 1,003.88, the 20-day Exponential Moving Average (EMA), while resistance may be encountered at 1,143.32, the first classic pivot resistance. Traders should keep an eye on the volatility, as indicated by the Average True Range (ATR) of around 71.75, suggesting reasonable price movements ahead. With a P/E ratio of 124, investors may find the stock relatively expensive compared to peers, but strong fundamentals like ROCE of 11% and ROE of 8.73% may justify the valuation. Overall, SHAILY appears to be in a corrective phase but shows signs of strength, making it a stock worth monitoring closely for potential entry points.