SRF Limited (SRF) Stock - Complete Technical Analysis - Oct 07, 2024

"SRF Limited Technical Analysis: Key Levels & Trading Strategies Revealed"

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.

Today, we will analyze SRF Limited, currently trading at 2308, which reflects a significant price drop of 14.33% from its 52-week high of 2693.95, reached on May 3, 2024. The stock shows resilience as it is only 10.83% above its 52-week low of 2082.25, observed on October 26, 2023.

In the past five trading days, SRF has exhibited volatility with notable price movements. On October 4, the stock opened at 2421.90 and closed lower at 2350.35, indicating a bearish trend. The following day, October 5, the stock opened at 2450.00 and closed at 2421.00, further confirming downward pressure. However, on October 7, SRF opened at 2350.35, experienced a low of 2292.30, and closed at 2307.80, showing potential support near the 2290 level.

Examining the technical indicators, the MACD is in the negative territory, suggesting bearish momentum. The RSI is at 30.81, indicating the stock is oversold and might be due for a bounce. The Average Directional Index (ADX) is at 20.25, reflecting a weak trend. Additionally, the Stochastic %K is at 15.96, suggesting a potential reversal. However, caution is warranted as the Awesome Oscillator is in negative territory, indicating continued bearish sentiment.

Support levels are seen around 2290, which aligns with the recent lows, while resistance levels are established near 2440, where the stock has struggled to maintain upward momentum. Given the current market conditions and the volatility exhibited in the last week, traders should watch these key levels closely for potential breakout or reversal opportunities.

In summary, SRF Limited is at a critical juncture. While the technical indicators point towards potential oversold conditions, the overall sentiment remains bearish. Traders should remain cautious, utilizing stop-loss strategies and keeping an eye on volume for confirmation of any reversal signals.