Polycab India Limited (POLYCAB) Stock - Complete Technical Analysis - Oct 07, 2024

Polycab India Limited: Navigating Price Trends, Support, and Resistance Levels

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.

Polycab India Limited (POLYCAB) is currently trading at 7,076.90, which is 4.75% below its 52-week high of 7,430.00 reached on October 3, 2024, and 86.19% above its 52-week low of 3,801.00 from January 11, 2024. Over the last five trading sessions, the stock exhibited notable volatility, with significant price movements including a recent drop from a high of 7,393.45 to a close at 7,076.90, indicating a bearish sentiment in the near term.

The average directional index (ADX) stands at 22.96, suggesting a weak trend, while the relative strength index (RSI) is at 58.54, indicating that the stock is nearing overbought territory but still within a healthy range for potential gains. The Stochastic RSI shows a reading of 79.78, confirming the overbought condition, which could prompt profit-taking.

Support levels are identified at approximately 6,547.50 and 6,139.80, which could act as potential price floors in case of a continued downturn. Resistance levels appear near the recent high of 7,430.00, which is critical for the bulls to reclaim the upward momentum.

The stocks price action demonstrates a series of gaps, particularly evident as it traded between 6,902.40 and 7,353.55 within the last week. Traders should monitor for potential reversals around these levels. Furthermore, the commodity channel index (CCI) of 97.49 reinforces the observation of an upward price trend.

Investors should be cautious, as the stocks momentum appears to be waning despite positive fundamentals like a P/E ratio of 60.7 and ROE of 23.1%. A break below the support level at 6,547.50 could signal a more extended bearish phase, whereas a move above 7,430.00 could set the stage for a bullish rally. Overall, traders should remain vigilant of sudden price drops and surges as they strategize their entries and exits in POLYCAB stock.