Deepak Fertilizers and Petrochemicals Corporation Limited (DEEPAKFERT) Stock - Complete Technical Analysis - Oct 18, 2024

Deepak Fertilizers Stock Analysis: Key Support & Resistance Levels Explained

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. Today, Deepak Fertilizers and Petrochemicals Corporation Limited is trading at 1,020, which is about 12.38% below its 52-week high and significantly above its 52-week low, indicating a strong recovery over the past months. Analyzing recent price action, we observe a series of fluctuations, with the stock experiencing a slight drop today from an opening of 1,030.05 and a high of 1,032.40, closing at 1,019.80.

Looking at support and resistance levels, immediate support can be identified around the 1,000 mark, with a secondary support level at approximately 974.90. Resistance is likely to be faced at the recent highs near 1,064, making it crucial for traders to watch these levels closely. The stock has seen notable volatility, as indicated by an Average True Range (ATR) that suggests fluctuations in price.

Technical indicators reflect a mixed sentiment; the MACD is currently in positive territory, indicating potential bullish momentum, while the RSI is hovering around the neutral zone, suggesting that the stock is neither overbought nor oversold. The Stochastic oscillator, however, is in the lower range, hinting at potential downward pressure.

The average directional index (ADX) suggests a weak trend, which aligns with the recent price movements that show no clear trend direction. Recent trading patterns reveal some gaps, particularly around 1,000 and 1,030, suggesting that these levels are pivotal for future price movements.

In summary, traders should keep an eye on the support level of 1,000, as a breach below this could lead to further declines. Conversely, a strong resistance near 1,064 must be overcome for a bullish breakout. The current technical landscape indicates a cautious approach may be best, watching for signs of trend reversals or confirmations.