Asian Paints’ shares have been going up and down recently and are now at Rs 2,277. This is a big drop of about 37% from their highest price of Rs 3,590. The daily price chart shows that the stock is near some important short-term averages (EMAs), but it’s also below its medium (50 days) and long-term averages (100 and 200 days). If the stock can break past these levels, it may rise again.
Currently, Asian Paints seems to be stabilizing. There’s a pattern called a “Double Bottom” on the price chart, which often suggests that a stock may start to rise. Hardik Matalia, an analyst at Choice Broking, points out that this pattern, along with positive price movements, means Asian Paints could be getting ready for an upward surge.
Big price changes and more trading activity show that investors are starting to get interested again. If the stock stays above Rs 2,420, it could confirm this upward movement and may rise to Rs 2,700 shortly.
The Relative Strength Index (RSI) is at 56.90, showing a possible upward trend with room to grow. Due to these signs, Matalia thinks buying Asian Paints at the current price is a good idea, but he advises setting a strict stop-loss at Rs 2,200 to manage risks.
Asian Paints has lagged behind the overall market over the past few years, but its prices are currently near a support level from February 2021. The RSI on the weekly chart is also in an oversold range, signifying a potential rebound is possible. Ruchit Jain from Motilal Oswal mentions that unless there is some strong buying momentum, the stock might face resistance at higher levels. The immediate challenge for a price increase is around Rs 2,550, where the 100-day average lies. On the downside, he sees immediate support at Rs 2,200.
Recently, Asian Paints shares closed at Rs 2,273 on the Bombay Stock Exchange, showing little movement.
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