Technical call of the Week
by Paresh Gordhandas, CA & Research Analyst.
Chanakya Technical Analysis
Gujarat Pipavav Port
The stock has posted a strong bullish surge, closing at Rs. 179.60 with a solid 4.53 percent gain. Price momentum is accelerating, supported by rising volume of 1.54 crore shares, which confirms strong trader participation.
Trend Structure
• Short-term and medium-term trends remain bullish, driven by sustained buying above key moving averages.
• Long-term trend stays mildly bearish, although the recent price breakout above all major SMAs and EMAs indicates an emerging reversal.
Moving Averages & Price Strength
Price is trading well above the 20-D SMA (163.35) and even beyond the upper Bollinger Band (173.53), suggesting a strong breakout phase.
The MACD (3.33) remains above the signal line, and the positive histogram supports further upside.
Momentum Indicators
• RSI at 71.46 signals the stock has entered an overbought zone.
• CCI at 198 and StochRSI %K at 100 confirm accelerated buying.
• These readings indicate strength but also raise the possibility of short-term pullback.
Trend Strength
• ADX at 30+ with DMI+ far above DMI- confirms a solid uptrend.
This is a healthy trending structure rather than a weak spike.
Support & Resistance Levels
Immediate Resistance: Rs. 184.59
Strong Resistance: Rs. 189.57
Beyond that, upside gates open toward Rs. 201–212.
Immediate Support: Rs. 178.01 (pivot)
Next Support: Rs. 173.03
Stronger cushion lies between Rs. 166–170.
Chanakya View
The stock is in a powerful short-term uptrend supported by volume, momentum, and trend indicators. However, multiple oscillators in the overbought zone suggest the rally could pause near Rs. 184–190. Any pullback toward Rs. 172–175 may offer a better risk-reward entry. A decisive close above Rs. 190 will open the door for a sharp move toward Rs. 200+.
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Technical Analysis by Chanakya
Significance of technical analysis by Chanakya
Technical analysis is a method used to evaluate and predict the future price movements of financial assets, such as stocks, commodities, or currencies, based on historical market data, primarily price and volume. It is widely regarded as an essential tool for traders and investors looking to make informed decisions in the financial markets. The usefulness of technical analysis lies in its ability to provide insights into market trends, price patterns, and potential reversals, helping investors make better decisions.
One of the primary advantages of technical analysis is that it focuses on price behavior and market sentiment. Unlike fundamental analysis, which examines a company’s financial health and economic factors, technical analysis concentrates purely on market movements and charts. By studying past price movements, traders can identify trends, support and resistance levels, and chart patterns, which can signal future price movements. This helps investors to time their trades more effectively, maximizing potential returns.
Moreover, technical analysis is applicable across various markets and timeframes, making it versatile for short-term traders as well as long-term investors. It is particularly useful for active traders who seek to profit from short-term price fluctuations, such as in day trading or swing trading.
Another key benefit is the use of technical indicators, such as moving averages, Relative Strength Index (RSI), and Bollinger Bands, which assist in confirming trends and identifying overbought or oversold conditions. These indicators add a layer of objectivity to decision-making, reducing emotional biases and enhancing the decision-making process.
In summary, technical analysis offers valuable insights into price trends, helping investors and traders make more informed decisions, manage risks effectively, and improve their chances of success in dynamic financial markets.
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