Chennai Petroleum Corporation Limited (CHENNPETRO) Stock - Complete Technical Analysis - Sep 06, 2024

Chennai Petroleum (CHENNPETRO) Stock Analysis: Bearish Trends and Key Support Levels NSE 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. Chennai Petroleum Corporation Limited (CHENNPETRO) is currently trading at 920, which is about 27.85% below its 52-week high of 1275 and 122.18% above its 52-week low of 414. The stock has a strong P/E ratio of 5.47, a solid book value of 577, and an attractive dividend yield of 5.98%. With a robust ROCE of 35.4% and ROE of 36.5%, the company demonstrates strong financial health.

Technical Analysis: The stock is currently positioned near key support levels, with immediate support around 895.03, while resistance is evident near the 1000 mark, correlating with various moving averages and pivot levels.

Moving Averages:

The stock is trading below the Exponential Moving Averages (EMA) for 10, 20, 30, and 50 days, indicating a bearish trend. The EMA lines at 967.15 (10-day), 972.92 (20-day), and 976.25 (30-day) are key resistance levels.

The Simple Moving Averages (SMA) also support this bearish outlook, with the 10-day SMA at 973.0 and the 20-day SMA at 968.73.

Pivot Points:

Classic Pivot Point stands at 967.02, with immediate resistance and support levels showing potential trading ranges.

Indicators:

The MACD is in negative territory, suggesting bearish momentum.

The RSI is at 38.67, indicating the stock is approaching oversold conditions.

The Stochastic %K and Stochastic RSI are also in oversold territory, reinforcing the potential for a reversal.

The ADX is low at 9.71, indicating weak trend strength.

Chart Patterns:

The stock is currently trading below several key moving averages and has formed a consolidation pattern, which might indicate a potential breakout or breakdown depending on market conditions.

Summary: Traders should monitor the stock around key support levels and be prepared for potential volatility. With the stock trading below major moving averages and indicators suggesting oversold conditions, there could be opportunities for a rebound if the stock holds above key support zones.