Info Edge (India) Limited (NAUKRI) Stock - Complete Technical Analysis - Dec 13, 2024

Info Edge (NAUKRI) Stock Technical Analysis: Breakout Opportunity Ahead 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. Detailed Technical Analysis of Info Edge (NAUKRI) Stock for Web Analysis

Info Edge (NAUKRI) stock is showing positive technical indicators with strong momentum. Trading at 8,702, the stock is near its 52-week high, just 0.87% below the peak of 8,778.65. The price has surged substantially from the 52-week low of 4,705, reflecting impressive growth over the past year. The recent price fluctuations indicate both strength and volatility, with the stock testing support near 8,475 and resistance around 8,778, suggesting that it is consolidating near its highs before a possible breakout.

Looking at the moving averages, NAUKRI is trading above its key short-term exponential and simple moving averages. The 10-day and 20-day EMAs, along with the 50-day and 100-day SMAs, are all trending upward, signaling continued bullish momentum in the short-to-medium term. The Relative Strength Index (RSI) is at 66.48, which is in the bullish zone but approaching overbought territory, indicating a potential for some price consolidation or pullback.

The Stochastic Oscillator is currently at 85.64, signaling that the stock is in the overbought range, suggesting that traders should be cautious about entering at these levels without confirmation of continuation. The MACD continues to show upward momentum, with positive readings suggesting that the bullish trend could continue, but traders should be on the lookout for any signs of exhaustion.

In terms of volatility, the Average True Range (ATR) indicates that the stock has been experiencing significant price swings. While this presents potential opportunities for active traders, it also means there is an inherent risk of sudden price reversals. The ADX at 23.5 reflects a moderately strong trend, implying that there is still room for further upside, but it's not a trending market in the extreme sense, suggesting that caution should be exercised as a reversal could be on the horizon.

Support levels lie near 8,475, which has held in recent days, while the major resistance remains around the 52-week high of 8,778. A break above this level could push the stock toward 9,000 or higher. Conversely, if the stock fails to break the resistance, a pullback toward the support zone is likely.

Summary & Recommendation: Given the stock's current overbought conditions, it may be prudent for traders to wait for a pullback to the 8,475 support level before considering new positions. For those holding positions, a stop-loss just below 8,475 offers good protection. If NAUKRI breaks above 8,778 and holds above this level, traders can target a higher price near 9,000, but they should be cautious of potential resistance. Traders should balance between risk and reward by waiting for confirmation of the trend continuation or consolidation before acting.