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SSWL

Tanks Over 6%: Technical Breakdown Triggers Sharp Selloff on 1st August 2025

Steel Strips Wheels Ltd

witnessed a sharp fall of 6.14% on Friday, closing at ₹216.82, marking one of its steepest single-day losses in recent months. The fall came despite a 4.5% YoY rise in July turnover announced just a day earlier. Market participants appear to have ignored this positive, focusing instead on weak June sales, upcoming Q1 results, and a clear technical breakdown. On the technical front, a well-formed Head & Shoulder pattern broke down decisively today. The neckline was placed around ₹230, and the head peaked at ₹275, giving a breakdown target of nearly ₹185. The stock also slipped below its 100-day SMA placed at ₹225, adding further pressure. Now, the next major support lies at ₹211, which is also close to the 200-day SMA. If ₹211 breaks, we may see further downside towards ₹195 and even ₹175. If the stock manages to reverse, ₹230 will be the first resistance and a critical level to reclaim. A close above ₹230 may attract some buying, while a breakout above ₹260 (shoulder level) would completely invalidate the bearish pattern and confirm trend reversal. Fundamentally, the company remains strong with a growing alloy wheels segment, steady financials, and top-tier OEM clients like Maruti, Hyundai, Tata, and BMW. However, near-term worries like export volatility, input cost pressure, and pre-result uncertainty seem to have driven today's fall. In short, today's down move was led by a technically driven breakdown, backed by weak sentiment ahead of results. Traders should stay cautious below ₹230, while long-term investors may track price action near ₹211 and ₹195 for any fresh accumulation opportunity. Disclaimer- Investment in the share market is subject to market risk, and past performance is not indicative of future results. Recommendations are for informational purposes only and should not be considered as buy or sell advice. Please conduct your own research and consult a financial advisor before making any investment decisions.