Saregama India Limited (SAREGAMA) Stock - Complete Technical Analysis - Oct 18, 2024

Saregama India Limited Technical Analysis: Key Levels to Watch

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. Let's explore the technical analysis of Saregama India Limited, which is currently trading at approximately 537. The stock is around 22% below its 52-week high of 688.9, which occurred on October 1st, while being approximately 73% above its 52-week low of 309.6 from November 1st last year.

Looking at the price trends, Saregama has exhibited volatility. In the past five trading days, the stock opened lower, reaching a peak close of 567.20, before settling at 536.80, indicating potential resistance in the 570 to 580 range. The recent close below the previous day's close of 546.80 suggests a bearish sentiment in the market.

Notably, there was a sharp price drop on October 17th, where the stock reached a high of 573.50 but closed at 546.80, reflecting a significant gap in investor confidence. This movement indicates a potential correction in price.

Indicators such as the RSI are currently at neutral levels, which means the stock is not in the overbought or oversold territory. The ADX shows a weak trend below 25, indicating a possible continuation of sideways movement unless new catalysts arise. The MACD is above zero but is converging, suggesting possible shifts in momentum.

Volatility is notably high, as seen in the Average True Range, which indicates that traders should be cautious of rapid price movements that could offer both risks and opportunities.

To summarize, Saregama India Limited appears to be in a corrective phase with resistance levels identified around 570 to 580 and potential support near 530. Traders should be alert for breakouts above resistance or further declines below support for actionable insights.