MRF Limited (MRF) Stock - Complete Technical Analysis - Oct 15, 2024

"MRF Stock Analysis: Key Support Levels & Potential Reversal Ahead Is a Bullish Breakout 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 currently trading at 1,31,027.25, down by 13.48% from its 52-week high of 1,51,445, which was recorded on February 23, 2024. It is, however, up by 22.45% from its 52-week low of 1,07,008.05, hit on November 7, 2023. This indicates a potential support zone near the 52-week low, while the resistance levels could be approached near the previous high.

Support and Resistance Levels:

The stock shows key support levels around 1,28,048 (Classic Pivot S2) and 1,33,281 (Classic Pivot S1), with strong resistance at 1,43,065 (Classic Pivot R1) and 1,47,616 (Classic Pivot R2). Given these levels, a break below 1,28,048 may indicate further downside, while any upward movement beyond 1,43,065 could suggest bullish momentum toward higher resistance levels.

Technical Indicators:

RSI (Relative Strength Index): Currently at 37.99, RSI suggests the stock is nearing oversold territory, signaling a potential buying opportunity if it dips further.

ADX (Average Directional Index): With an ADX reading of 16.52, the trend strength appears weak, suggesting that MRF is in a consolidation phase, waiting for a clear direction.

MACD (Moving Average Convergence Divergence): The MACD shows bearish momentum as it is below the signal line, indicating that selling pressure persists in the short term.

Stochastic Oscillator: The Stochastic %K at 9.79 and Williams %R at -96.01 highlight an oversold condition, potentially hinting at a reversal if buying interest picks up.

Moving Averages:

MRF is trading below its short-term EMAs (10, 20, 30) and long-term SMAs (50, 100, 200), suggesting a bearish bias in the short to medium term. The stock faces resistance near its 10-day EMA of 1,33,137.5 and 20-day EMA of 1,34,404.41. If prices break above these moving averages, it could signal a reversal to the upside.

Chart Patterns:

An Inside Candle Pattern was observed on October 7, 2024, indicating indecision in the market. The parent candles range is between 1,35,500 and 1,30,555, and the stock has stayed within this range for the past seven days. A breakout above or below this range could determine the next directional move.

Volatility and Momentum:

The Average True Range (ATR) of 6,376.86 suggests moderate volatility in the stock. The Momentum indicator is negative, signaling that MRF is experiencing downward pressure. However, if momentum shifts, this could lead to a swift price reversal.

Conclusion:

MRF is in a consolidation phase with bearish momentum indicators, but the oversold levels in RSI and Stochastic suggest a possible bounce from current levels. Traders should watch for a breakout above the resistance levels of 1,33,137 (EMA) and 1,43,065 (Classic Pivot R1) for bullish confirmation. On the downside, a break below 1,28,048 could lead to further selling pressure.

Given the weak ADX, traders may need to exercise patience and wait for clear breakout signals.