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

Marico Limited Technical Analysis: Is a Reversal Coming

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.

Marico Limited's stock is currently trading at 678.80, showing a significant distance of 5.70% below its 52-week high of 719.85, reached on October 3, 2024. Conversely, it's also 39.58% above its 52-week low of 486.30 recorded on March 19, 2024. This highlights a bullish trend in the stock over the year.

The Average Directional Index (ADX) at 21.21 suggests a developing trend, while the Relative Strength Index (RSI) is at 46.7, indicating that the stock is approaching neutral territory. The Stochastic %K at 32.33 indicates potential oversold conditions, which traders should monitor for a possible upward reversal. Additionally, the MACD level at 5.68 suggests that the stock may have bullish momentum, but the recent drop from the recent high to the current price indicates a need for caution.

The last five days of trading show a slight volatility, with the most recent session opening at 686.25 and closing lower at 678.80, after reaching a high of 694.20 and a low of 673.80. The previous day saw a more substantial drop from a high of 703.95 to close at 690.20, suggesting that the stock may be experiencing profit-taking or market corrections.

Key support levels are found around 673.80, with strong resistance near the recent high of 694.20 and critical resistance identified at the 52-week high of 719.85. The Classic Pivot Point at 680.63 provides a reference for potential price movement, while the volume-weighted moving average (VWMA) at 691.56 indicates a bearish sentiment as the stock trades below this level.

Investors should keep an eye on volume trends and key moving averages for future price action, particularly if the stock can reclaim the 690.00 level, which could signal a shift back into bullish territory. Overall, with a solid ROE of 29.3% and a dividend yield of 1.40%, Marico remains an attractive option, provided it can overcome current resistances.