 |
|
The article delves into the recent downturn experienced by Jupiter Wagons, a company operating within the realm of stock market activity. The report highlights a significant decrease in the stock's value, surpassing 7 percent, marking the third consecutive session of decline. This downturn is attributed to a confluence of factors, including substantial trading volume and profit-booking maneuvers by investors. The article notes a dramatic increase in trading activity, exceeding the typical average volume, indicating widespread interest and potential profit-taking. This surge in activity is seen as a contributing factor to the stock's decline.
The article further elaborates on the technical aspects driving the stock's downward trajectory. A prominent technical analyst, A R Ramachandran of Tips2trades, provides insights into the technical indicators signaling a potential continued fall. Ramachandran draws attention to a phenomenon known as 'negative RSI divergence,' which typically precedes a decline in a stock's price. This divergence is characterized by the RSI indicator failing to create new highs alongside the price action, suggesting a weakening momentum and potential for a correction.
The technical analyst goes on to pinpoint specific price points that are pivotal in determining the stock's future direction. A strong resistance level is identified at 547, indicating a price point where the stock may face significant resistance to further increases. Moreover, the analyst notes that a daily close below the support levels of 528 and 511 could trigger further declines, potentially leading the stock to hit 494 and even 470 in the near term. This analysis underscores the potential for continued downward movement, suggesting that investors should exercise caution and monitor the situation closely.
Source: Stock Market LIVE Updates: Nifty near 24,900, Sensex up 220 pts; metals, power stocks slump