Lupin Limited (LUPIN) Stock - Complete Technical Analysis - Nov 28, 2024

Lupin Limited Technical Analysis: Key Support & Resistance Levels, Stock Insights Partha Kuchana

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. Lupin Limited (LUPIN) is showing mixed technical signals in its current price range of 1998.4, sitting well above its 52-week low but still far from its 52-week high of 2312. The stocks P/E ratio of 30.4, book value of 482, and steady ROCE of 14.1% suggest strong fundamentals. However, recent technical indicators point toward potential short-term volatility.

The candlestick pattern for the day shows a spinning top, reflecting indecision in the market, and a slight downward bias is suggested by the RSI and MACD. Short-term traders should focus on key support near the 1986 mark, with a more critical support range at 1980, while resistance lies at 2021 and further strength could be capped at 2047. The exponential moving averages are in a downtrend, reinforcing the idea of resistance levels acting as a ceiling.

In terms of momentum, the RSI is hovering around 36, indicating a slightly oversold condition, while MACD's negative reading and the Awesome Oscillator further support a bearish outlook. The ADX reading of 35 shows that the stock is currently in a strong trend, but its negative slope suggests that the prevailing trend may be weakening.

Volatility, as measured by the Average True Range (ATR), remains relatively high at 117, showing potential for substantial price fluctuations. With price movement between 1980 and 2021 expected in the short-term, traders should remain cautious and monitor closely for signs of breakouts or breakdowns from these levels.

Long-term investors can take comfort in the company's solid financials, but short-term traders may want to wait for clearer directional movement before committing further capital to the stock.