Sanghi Industries Limited (SANGHIIND) Stock - Complete Technical Analysis - Nov 26, 2024

Sanghi Industries Stock Analysis: Bearish Trends, Key Levels & Trading Strategies

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.

Sanghi Industries Limited shows a prolonged bearish trend, with the price trading below critical moving averages such as SMA and EMA for 50 and 200 days. The RSI at 40.66 suggests that the stock is nearing oversold territory, but lacks strong buying pressure to signal a reversal. MACD remains in the negative zone, affirming bearish momentum, while ADX reflects weak trend strength.

Recent price action highlights significant volatility, particularly with a sharp gap-down observed on Nov 21, dropping from 79.61 to 72.71. This gap serves as a key resistance zone in the short term. Additionally, Awesome Oscillator and Momentum indicators both show negative values, supporting a bearish outlook.

Support at 74.36 is critical for stability, while resistance levels near 80-83 align with several pivots and EMA levels. Breaching these resistance levels with volume could signal a bullish breakout. ATR readings further underline increased volatility, suggesting the potential for sharp price swings. Traders are advised to exercise caution, using tight stop-loss levels and focusing on short-term opportunities given the weak fundamentals, including negative ROCE and ROE.