Muthoot Finance reaches oversold zone near ₹2,400

Muthoot Finance closed near ₹2,396 after another sharp decline, extending the lower-high and lower-low structure visible since February. The price is far below the 20-day moving average near ₹2,658 and the 55-day average around ₹2,823. Both averages are declining, which confirms that the daily trend remains firmly bearish. ₹2,400 is now the immediate support zone. The stock has approached this level after a sustained fall, and a break below it could bring ₹2,300–₹2,250 into focus. The recent candles show strong selling pressure, so support needs to be defended on a closing basis rather than through only intraday bounces.

stochastic oscillator is deeply oversold, with %K near 2.8 and %D around 8.7. This indicates that the fall is stretched and a short-covering bounce is possible. However, %K remains below %D, so there is no confirmed momentum reversal yet. For recovery, Muthoot Finance must first reclaim ₹2,658, its 20-day average. ₹2,823 remains the larger resistance and trend-reversal hurdle. Until the stock forms a higher low and moves above ₹2,658, the technical setup remains weak despite the oversold reading.