Dalmia Bharat Limited (DALBHARAT) Stock - Complete Technical Analysis - Oct 15, 2024

Dalmia Bharat Limited Stock Analysis: Key Levels and 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. Technical Analysis of Dalmia Bharat Limited (DALBHARAT)

As of today, Dalmia Bharat Limited is trading at 1,885.95, which is significantly below its 52-week high of 2,430.7. This indicates a notable decline of 22.41% from its peak, suggesting that the stock may be currently undervalued. The stock is also 14.20% above its 52-week low of 1,651.4, indicating some level of support at this lower range.

Price Trends and Support/Resistance Levels

The last few trading sessions have shown some volatility. The recent price action suggests a downward trend with lower highs observed recently, particularly as the stock opened at 1,898.00 today but closed lower at 1,885.95. The stock has experienced sudden price drops, particularly on Oct 9 and Oct 10, where it fell from a high of 1,900.00 to close at 1,840.75. This could indicate selling pressure or profit-taking by investors.

Key support levels to watch include the recent low of 1,853.70. A drop below this could lead to further declines, while resistance is observed around 1,898.00. The stock's 50-day EMA at 1,866.90 further reinforces this level of resistance.

Volatility and Indicators

The Average True Range (ATR) suggests a high level of volatility, indicating that traders should be cautious. The ADX at 16.53 implies a weak trend, and the RSI at 51.1 suggests that the stock is neither overbought nor oversold, indicating potential for sideways movement. Stochastic indicators show a level of 35.63, signaling a potential upward move if the stock gains momentum.

The Inverted Hammer pattern formed recently hints at a possible bullish reversal; however, its reliability is questionable given the overall trend. Watching for volume surges alongside any upward movement will be crucial for confirming this potential reversal.

Conclusion

In summary, Dalmia Bharat Limited is currently facing downward pressure, with crucial support at 1,853.70 and resistance around 1,898.00. Monitoring these levels along with the technical indicators will be essential for traders looking to capitalize on potential price movements.