Dalmia Bharat Limited (DALBHARAT) Stock - Complete Technical Analysis - Nov 08, 2024

Dalmia Bharat (DALBHARAT) Stock Analysis: Key Support, Resistance, and 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.

Web-Friendly Technical Analysis of Dalmia Bharat Limited (DALBHARAT)

Dalmia Bharat (DALBHARAT) is trading around 1768, reflecting a bearish trend amid consolidation near its 52-week low. With resistance established around 1800 and support identified near 1650, the stock appears positioned in a narrow trading band. The recent price trend shows a steady decline marked by lower highs, indicating selling pressure remains dominant. This aligns with a MACD reading in bearish territory, signaling ongoing downtrend momentum. The RSI at 40 hints at oversold conditions, which could lead to a bounce-back, but the ADX at 20 suggests this trend lacks strong momentum.

Moving averages show DALBHARAT trading below its 200-day EMA and SMA, around the 1890 region, underlining bearish sentiment. This is compounded by the Ichimoku base line at 1866, creating a significant resistance zone that the stock will need to overcome for a bullish reversal. Further, with Awesome Oscillator and Momentum both negative, the stock lacks upward support from these technical indicators.

The pivot-based analysis suggests immediate support at 1730 and resistance around 1950, forming a trading range. Stochastic %K sits at 38, indicating the stock may not yet be ready for a strong rebound. Elevated ATR values signify heightened volatility, so any breakout or breakdown beyond these pivot levels could result in significant movement. Additionally, with a high PE ratio and low ROCE and ROE, the stock may seem overvalued for long-term investment, suggesting that investors might approach cautiously until theres a confirmed reversal pattern or significant fundamental improvement.