KPIT Technologies Limited (KPITTECH) Stock - Complete Technical Analysis - Sep 04, 2024

KPIT Technologies Stock Analysis: Support, Resistance

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.

KPIT Technologies Limited (KPITTECH) is currently trading at 1,750. The stock shows a strong performance in terms of ROCE and ROE, with figures of 38.4% and 31.2%, respectively. However, the stock's high P/E ratio of 72.4 suggests it is trading at a premium relative to its earnings.

From a technical standpoint, the stock has several indicators suggesting potential price movements:

Support and Resistance Levels:

Support: The primary support levels are around 1,693 and 1,571.05, with a more critical support at 1,335.05.

Resistance: The key resistance levels to watch are around 1,929.1 and 2,043.05, with a higher resistance at 2,279.05.

Technical Indicators:

MACD: The MACD is currently positive, indicating a bullish momentum.

RSI: The RSI is at 43.38, suggesting that the stock is approaching the oversold region but is not yet there.

Stochastic Oscillator: The Stochastic %K is at 10.69, indicating a potential for reversal from an oversold condition.

Stochastic RSI: The Stochastic RSI is very low at 1.08, confirming strong oversold conditions.

ADX: The ADX at 25.32 reflects a moderate trend strength, suggesting that the trend might gain strength if it continues.

Moving Averages:

Exponential Moving Averages (EMAs): The EMAs indicate that the short-term trend is slightly above the longer-term trend, suggesting potential for a bullish movement. The 10-day EMA is at 1,798.88, while the 200-day EMA is at 1,545.3.

Simple Moving Averages (SMAs): The SMAs show a similar trend to the EMAs, with the 10-day SMA at 1,816.77 and the 200-day SMA at 1,570.38.

Oscillators:

Commodity Channel Index (CCI): The CCI is at -80.63, indicating that the stock is in an oversold territory.

Awesome Oscillator: The Awesome Oscillator is negative at -8.07, reflecting weaker momentum.

Williams %R: At -97.33, the Williams %R indicates a strong oversold condition.

Pivot Points: The classic pivot point stands at 1,807.05, with primary supports and resistances forming significant levels for traders to watch.

Overall, KPIT Technologies Limited shows signs of potential reversal from oversold conditions, supported by bullish MACD and positive moving averages. However, caution is advised as the stock is trading at high valuations, and key resistance levels need to be watched closely.