Shriram Finance Limited (SHRIRAMFIN) Stock - Complete Technical Analysis - Nov 18, 2024

Shriram Finance Technical Analysis: Bearish Momentum or Reversal Key Levels to Watch

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. Shriram Finance Limited (SHRIRAMFIN) has recently been under selling pressure, with the stock trading at 2,848.15, which is approximately 22% below its 52-week high and 47% above its 52-week low. Over the last week, the stock's price has been volatile, with frequent fluctuations between 2,783 and 2,930. The current Relative Strength Index (RSI) is in the oversold territory, suggesting a potential for a short-term bounce. However, the MACD and Momentum indicators remain negative, signaling bearish momentum.

The Average Directional Index (ADX) is quite elevated, indicating a strong trend, but given the current negative price action, the trend appears to be down. This aligns with the stock's movement below its short-term moving averages, and suggests that the current trend may continue until further confirmation.

For those trading the stock, the key levels to monitor are 2,800 on the downside, followed by 2,665 as the next major support. On the upside, resistance lies at 2,930 to 2,970, with 3,010 to 3,060 as the next major levels to watch. Given the current technical picture, the stock faces potential near-term weakness, and traders may want to hold off on long positions until a reversal signal is seen. A break above 2,930 could signal a possible recovery, but for now, the downward trend is intact.