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

MRF Stock Analysis Bearish Trends and Key Support Levels 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.

MRF Limited (MRF) is trading at 1,31,238, which is 13.34% below its 52-week high of 1,51,445 and 23.34% above the 52-week low of 1,06,405. The stock has shown significant volatility over the last few sessions, with large price swings from 1,41,000 on Sep 30th to 1,31,237.85 today. This recent decline indicates potential bearish pressure, which is evident from the technical indicators.

Price Trends and Sudden Drops:

The stock has experienced a notable drop in recent days, going from 1,41,884.85 on Sep 30th to 1,31,237.85 today. This represents a rapid decline, which could signal a potential reversal or a continuation of the bearish trend.

Support and Resistance Levels:

Key support levels to watch are 1,28,048 and 1,33,281 based on Classic Pivot points. If the stock breaches these levels, it may continue its downward movement toward the 52-week low. Resistance is seen at 1,43,065 and 1,47,616, with any move beyond these levels suggesting bullish momentum.

Technical Indicators:

MACD shows a bearish crossover with negative momentum, indicating a potential continuation of the current downtrend.

RSI is at 37.74, indicating the stock is approaching oversold territory. A reversal could be expected if RSI dips further.

ADX is at 16.26, suggesting a weak trend. The stock may be consolidating before a major move.

Stochastic Oscillator is deeply oversold at 13.67, signaling that a reversal may be on the horizon.

CCI at -168.75 and Williams Percent Range at -94.23 both suggest that the stock is in oversold conditions, which may present a buying opportunity if a reversal occurs.

Moving Averages:

The stock is trading below key EMAs (10, 20, 50-day), showing bearish sentiment. The nearest resistance from moving averages is at 1,35,723 (50-day EMA), while the 200-day EMA at 1,29,997 acts as a strong support level.

Volatility and Reversals:

With an ATR of 6,376.86, MRF exhibits high volatility, and traders should be cautious of potential sharp price movements. Given the oversold conditions, a short-term reversal could be likely, but the stock needs to break above 1,33,000 for any sustained recovery.

In summary, MRF is in a bearish phase but is approaching oversold levels, making it a key stock to watch for a potential reversal. Traders should monitor support at 1,28,000 and resistance at 1,43,000 to gauge the stock's next move.