Tata Elxsi Limited (TATAELXSI) Stock - Complete Technical Analysis - Oct 07, 2024

Tata Elxsi Stock Analysis: Support, Resistance, and Trading Strategies Unveiled

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.

Tata Elxsi Limited is currently trading at 7431, which is 19.23% below its 52-week high of 9200 and 15.90% above its 52-week low of 6411. Analyzing the last five days, we can observe fluctuations indicating a mixed trend. The most recent session opened at 7580, touched a high of 7627.95, and closed at 7430.65, suggesting a pullback after testing upper resistance.

Support and Resistance Levels

The immediate support level is at 7428.92, with further support at 7133.38, suggesting a potential area for buyers to step in if the stock drops further. On the resistance side, the stock is facing hurdles around 7785.53, and breaking above this could lead to further upward momentum.

Technical Indicators

The MACD is indicating bullish momentum with its level positioned above the signal line, but the RSI at 42.32 suggests that the stock is nearing oversold territory, indicating a potential reversal if buying interest increases. The ADX at 25.72 indicates a trend is present but lacks strong strength, suggesting caution for traders.

The Stochastic %K and Stochastic RSI are both indicating oversold conditions, which may point to an upcoming reversal. Moreover, the Commodity Channel Index and Awesome Oscillator are in negative territory, hinting at bearish pressure.

Price Trends and Gaps

In the past five trading sessions, we see a pattern of higher highs and lower lows, which indicates potential volatility. On October 1, the stock opened at 7725 and closed lower at 7765.25, showing a possible gap-down scenario that has been somewhat filled in subsequent trading.

Volatility and Reversals

The Average True Range shows elevated volatility, which suggests traders should prepare for larger price swings. The current price action indicates that we may experience further reversals if buyers step in near the support levels mentioned. The Hull Moving Average indicates a downtrend, confirming that the short-term outlook remains bearish.

In summary, traders should be cautious in the current environment. Watching for price action around the identified support and resistance levels will be crucial for determining the next moves in Tata Elxsi's stock price.