Aditya Birla Fashion and Retail Limited (ABFRL) Stock - Complete Technical Analysis - Dec 16, 2024

Aditya Birla Fashion and Retail (ABFRL) Technical Analysis: Key Support and Resistance Levels Reve

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.

Aditya Birla Fashion and Retail Limited (ABFRL) has been showing signs of price weakness recently, trading at 301.35, significantly below its 52-week high of 364.4. The stock has seen a rebound since its 52-week low of 198.75, but short-term indicators suggest caution. The Average Directional Index (ADX) stands at 19.05, indicating a lack of strong trend direction, while the Relative Strength Index (RSI) at 44.16 signals a neutral stance. The Stochastic RSI Fast at 20.94 and Stochastic %K at 38.17 further confirm this neutral bias, with no clear trend direction in sight.

The price action and moving averages indicate potential bearish pressure. The stock has dipped below its 10-day Exponential Moving Average (EMA) of 306.92 and Simple Moving Average (SMA) of 309.9, which suggests some selling momentum in the short term. However, the stock is still trading above the critical support level at 296.67 (200-day EMA), which could prevent a further decline if it holds. The Classic Pivot Support at 291.83 provides additional support below.

The chart formation of an inverted hammer on December 13th, 2024, hints at a potential bullish reversal, but this signal is weaker in the current market context. The key levels for traders to watch are the resistance zone between 310 and 312 and the support area between 295 and 300. If ABFRL breaks below 295, it could indicate further downside risk, but a push above 310 could signal the start of a bullish trend towards the 320 resistance.

Given the overall market conditions and the price behavior, ABFRL is likely in a short-term consolidation phase, making it crucial to watch for a break in either direction. Traders should be ready to act once there is a clear price breakout above 310 or a breakdown below 295.