Sundaram Finance Limited (SUNDARMFIN) Stock - Complete Technical Analysis - Dec 13, 2024

Sundaram Finance Technical Analysis Support, Resistance & Indicators Breakdown 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. Sundaram Finance Limited Detailed Technical Analysis - December 2024

Sundaram Finance Limited, currently priced at 4207, is showing some strong price action amidst the current market conditions. Trading 24% below its 52-week high of 5535.85, the stock is seeing a recovery from its 52-week low of 3291.35. Over the last five days, the price action has been volatile, fluctuating between 4160 and 4334. The current price is within a range where it has found some support, and resistance levels are building up around 4450-4500.

Key Support and Resistance:

Support Levels: Immediate support is found at 4200, followed by a secondary level at 4000. If the price breaks below 4000, there could be further downside potential.

Resistance Levels: Key resistance is observed around 4300 and then at the 4450-4500 range. If the stock manages to break through these levels, we could see a continuation towards the upper end of the trading range.

Trend Indicators and Patterns: Looking at the RSI, which is sitting at 44.13, the stock is nearing the neutral zone, signaling no immediate overbought or oversold conditions. The MACD at -75.64 suggests the stock is in a bearish trend, but the momentum is weakening, indicating the possibility of a reversal if the price starts to trend upwards. The ADX value of 18.37 shows a lack of a clear directional trend, implying that the stock could continue to range-bound in the short term.

Volatility Analysis: With an Average True Range of around 341, the stock is experiencing moderate volatility, meaning it has the potential for quick price movements within its established range. Traders should watch for significant price movements, as any breakout above resistance could signal a potential bullish trend, while a drop below support could lead to further declines.

Short-Term Outlook: The stock is in a consolidation phase with price fluctuations between 4160 and 4300. A break above 4300 could trigger a positive movement, while a dip below 4200 could lead to further declines towards 4000. Traders should focus on momentum indicators such as MACD and RSI to confirm the next directional move.

In summary, Sundaram Finance is consolidating in a range, with support at 4200 and resistance at 4300-4450. It's crucial to monitor the stock's price action and momentum indicators for the next breakout or breakdown.