Shriram Finance Limited (SHRIRAMFIN) Stock - Complete Technical Analysis - Oct 22, 2024

Unlocking Shriram Finance: Technical Insights for Smart Trading

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 for Shriram Finance Limited (SHRIRAMFIN)

At a current price of 3,254.50, Shriram Finance has dipped 10.89% from its recent peak of 3,652.25 on September 27, 2024. Despite this recent downturn, the stock remains 84.83% above its 52-week low of 1,760.85, recorded on October 26, 2023.

Price Trends and Gaps: Analyzing recent trading patterns reveals significant volatility, with the stock reaching highs of 3,391.00. However, the notable drop from a high of 3,390.40 to today's close highlights potential bearish sentiment. Recent trading days depict fluctuations where the stock opened lower than previous days, indicating pressure from sellers.

Key Levels: The primary support level is positioned at 3,240, reflecting a recent low and additional support at 3,010.88. Resistance levels are established at 3,391 and around 3,473.08, where sellers may emerge again.

Indicator Insights: The ADX reading of 28.79 indicates a trend is in place, but the RSI at 42.17 suggests the stock is approaching oversold conditions, hinting at a possible reversal if buyers start to step in. The MACD remains negative, which reinforces the bearish outlook, while the Awesome Oscillator and Williams Percent Range confirm the prevailing downward pressure.

Volatility and Risk: With an ATR indicating volatility levels in the range of 40-45, traders should brace for potential price swings. Monitoring the behavior around support and resistance levels is essential for identifying future trading opportunities, particularly looking for a shift in momentum to signal a reversal.