Aditya Birla Capital Ltd. (NSE: ABCAPITAL) Technical AnalysisCurrent Price: ₹201.60 (-0.82%)
Price Target (Jefferies): ₹265, maintained at Buy
Technical Overview
Price Action: The chart reflects a strong support level near ₹197-₹201, where the price is currently hovering. The support zone is reinforced by a trendline that has been respected several times (highlighted with green arrows). This support level aligns with a high-volume node in the volume profile, indicating considerable buying interest around this area.
Volume Profile Analysis: A significant amount of trading activity has occurred around the ₹190-₹200 range, suggesting strong demand. On the upside, high trading volume can also be seen around ₹227 and ₹241, which could act as resistance if the stock attempts an upward move.
Moving Averages: The 50-day and 200-day moving averages are providing additional support and resistance signals. The stock is currently trading near its 200-day moving average, which has historically provided solid support. A sustained break below this level could indicate bearish momentum.
Resistance Zones: The stock has encountered resistance around ₹240 (indicated by red arrows), with multiple attempts to break this level failing. This level will be crucial for the next bullish wave, and a breakout above it could lead to a new upward trend.
Key Pattern Observations: A broad ascending triangle pattern is observed, with the stock making higher lows since last year. This bullish structure indicates underlying strength, but a break below the support line could invalidate this pattern.
Technical Indicators
1.RSI: The Relative Strength Index is nearing the oversold territory, suggesting that the stock may be due for a reversal or consolidation phase.
2.Support and Resistance Levels:
Immediate Support : ₹197
Critical Support : ₹190
Resistance Levels: ₹211, ₹227, ₹241
Outlook and Conclusion
With Jefferies setting a revised target of ₹265 and maintaining a Buy rating, there is an optimistic long-term outlook. However, in the short term, the price may continue to consolidate around the ₹190-₹200 support region.
Bullish Scenario: If the stock bounces off the ₹197 level, supported by increased volume, it could make another attempt to reach ₹227 or even test the critical ₹240 resistance.
Bearish Scenario : A sustained break below ₹190 might attract further selling pressure, pushing the stock toward the ₹175 region.
Investment Idea: Traders may look for buy signals around the support zones of ₹190-₹200, with a potential target near ₹227 and ₹240, while maintaining a stop loss slightly below ₹190.
