Polycab India Limited (POLYCAB) Stock - Complete Technical Analysis - Oct 23, 2024

Polycab India Limited Technical Analysis: Key Levels & 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. Polycab India Limited's stock, currently priced at 6,662, showcases a 12.40% decline from its recent peak of 7,605. The stock's recent trend illustrates heightened volatility, particularly highlighted by sharp price drops and surges. For instance, on October 21, POLYCAB experienced a notable drop, closing at 6,849.75 after hitting a high of 7,243.95 earlier in the day. This indicates a trend of bearish sentiment despite previous upward movements. The RSI is positioned below the neutral zone, suggesting the stock may be oversold, while the MACD hints at a potential bullish divergence. Key support is around 6,670, aligning with the 200-day EMA, whereas resistance looms near the 7,000 mark. Given the significant gap observed on October 18, where the price surged from 6,699.95 to 7,170, traders should watch for confirmation of upward momentum. The 52-week range indicates that POLYCAB is performing well above its lows, boasting solid financial fundamentals, with a ROCE of 31.4% and ROE of 23.1%, highlighting the company's strength. Therefore, watching these key technical levels will be crucial for traders considering entry or exit points.