NHPC Limited (NHPC) Stock - Complete Technical Analysis - Oct 22, 2024

NHPC Stock Technical Analysis Oversold or More Downside Key Levels & Indicators 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. NHPC Limited has faced continuous selling pressure in recent sessions, trading at 78.60, far below its 52-week high. The RSI is signaling extreme oversold conditions, hinting at a possible price rebound in the near term. However, the ADX reflects a strong bearish trend, supported by negative signals from the MACD and Stochastic, confirming continued weakness.

The stock is currently trading below crucial EMAs, including the 50-day and 200-day averages, a bearish sign for short-term momentum. Traders should note the consistent volatility, reflected by the ATR, suggesting that sharp price movements are likely in the coming sessions. NHPC has also formed price gaps on its recent chart, signaling potential downward continuation or sudden rebounds.

Investors should keep an eye on support levels near the 52-week low of 48.40, while the 50-day EMA could act as a strong resistance point. If the price manages to break above this level, we could see bullish momentum return. However, until this happens, traders are advised to remain cautious and closely monitor volume and momentum indicators for early signs of reversal.