Muthoot Finance Limited (MUTHOOTFIN) Stock - Complete Technical Analysis - Oct 07, 2024

Muthoot Finance Stock Analysis Key Support & Resistance Levels Is a Rebound 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. Muthoot Finance Limited (MUTHOOTFIN) is currently trading at 1,882, showing a notable decline from its recent high of 2,078.75, while still significantly above its 52-week low of 1,182. The stock has been facing consistent downward pressure, as indicated by the price movements in recent days. The RSI is currently at 37.62, suggesting that the stock is approaching oversold territory, while the ADX at 19.32 reflects a weak trend, indicating that the current downward trend may not be particularly strong. Momentum indicators, such as the Stochastic %K and Williams %R, are deeply oversold, signaling that a potential reversal could be on the horizon, but traders should exercise caution.

The MACD shows signs of bearish momentum, with the Awesome Oscillator also reflecting negative sentiment in the market. The stock's price is currently trading below key moving averages, including the 50-day and 100-day EMAs, further supporting the bearish outlook in the near term. However, the long-term trend remains positive as the stock is still well above its 200-day EMA, which lies at 1,701, indicating that the overall uptrend could resume after this period of correction.

In terms of support and resistance, the stock is facing strong resistance near the 1,930-1,950 range, where recent price action failed to sustain upward momentum. A break above these levels could open the path toward the 2,000 mark. On the downside, key support is seen around 1,850, and a break below this level could trigger further selling pressure, potentially bringing the price closer to the 1,800 psychological level.

The volatility in the stock, as seen from the ATR, suggests high fluctuations, making it an attractive option for short-term traders looking to capitalize on price swings. However, caution is advised, as the stock's current oversold signals may lead to a bounce-back in the short term.