Sportking India Limited (SPORTKING) Stock - Complete Technical Analysis - Dec 10, 2024

Sportking India Ltd Stock Analysis: Technical Indicators, Support & Resistance Levels for Dec 2024

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. Sportking India Limited is trading at 118, having gained attention due to its stable fundamentals and strong technical indicators. The stock has a P/E of 16, offering an affordable price relative to earnings. The book value is 75, which adds a margin of safety for investors. Although the dividend yield is modest at 0.42%, the return on equity (ROE) at 8.55% and return on capital employed (ROCE) at 10.1% suggest solid profitability.

Technically, Sportking is experiencing significant price action with some indecision in the market, indicated by the formation of a Doji and Spinning Top candlestick patterns. This typically signals that traders are uncertain about the direction in the short term. The Relative Strength Index (RSI) stands at 69.76, approaching overbought conditions, while the Stochastic RSI at 100 shows that the stock has been in strong bullish momentum, but there is a risk of it being overextended.

The key support for Sportking is at 116.32, which corresponds with recent lows, and further support is likely around 105. Resistance is seen near 122.78, with the stock potentially pushing higher toward the 130-135 levels if it breaks through. The stocks MACD remains positive, reinforcing the upward trend, and the average directional index (ADX) at 23.54 suggests a moderate trend strength.

The Average True Range (ATR) at around 45.54 indicates substantial volatility, which could lead to sudden price movements. Traders should stay alert for potential pullbacks and price surges, and manage their risk accordingly. In conclusion, Sportking is showing strength, but the current volatility makes it crucial for traders to monitor key price levels and stay prepared for any significant movements.