Castrol India Limited (CASTROLIND) Stock - Complete Technical Analysis - Oct 08, 2024

Castrol India Limited Technical Analysis: Support, Resistance & Trading Insights

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. Castrol India Limited is currently trading at 224, which places it 21.29% below its 52-week high of 284.4, achieved on August 27, 2024. Conversely, it is 69.07% above its 52-week low of 132.4, recorded on November 7, 2023. The recent trading session indicates some volatility, with today's open at 220.74, a low of 218.37, and a high of 226.20. The close at 223.85 reflects a slight recovery from yesterday's close of 220.78, suggesting potential buying interest around the support level near 220.

Analyzing the recent price action, we notice that the stock has experienced a significant drop from its recent high of 244.57 on October 1, 2024, to the current levels, indicating a downtrend over the last week. The stock's average directional index (ADX) of 27.85 suggests a trending market, albeit with weakness, as reflected by the RSI at 28.66, which indicates oversold conditions. This is reinforced by the Stochastic indicators, which are also at low levels, signaling potential reversal opportunities if buying pressure increases.

Support levels can be identified around the recent lows of approximately 220, with further support at 217.87 based on classic pivot points. Resistance appears to be forming at the 240 mark, where multiple moving averages converge, indicating a critical hurdle for the stock to regain its bullish momentum.

Volatility remains a concern, as shown by the average true range (ATR), indicating the stock's propensity for sharp price movements. A reversal from these oversold conditions could create a buying opportunity for traders looking for recovery plays, while those seeking short positions may want to be cautious of potential rebounds as the stock approaches the identified support levels.

Overall, investors should watch for confirmation of price action around these key levels, with an eye on the technical indicators for any signs of a trend reversal.