KOTAKBANK

Shows Signs of Recovery from Oversold Zone

On 23rd July 2025,

stock price faced resistance near the 20-day moving average and formed a Doji candlestick pattern, which typically signals indecision or a potential reversal. Following this, the stock began to decline. Over the next few sessions — specifically on 28th, 29th, and 30th July — the candlesticks were formed completely outside the lower Bollinger Band, and during this time, the Relative Strength Index (RSI) was below 30. These indicators suggest that the stock had entered an oversold zone, often considered a potential setup for a rebound in price. On 31st July 2025, the stock gave a positive signal by closing above its 200-day moving average, a key long-term support level. Interestingly, in the latest session, the stock once again took support from the 200-day moving average and showed strength. This price behavior, along with technical indicators, points to a bullish outlook in the near term. If the momentum continues, the stock may move upward towards the 20-day moving average, which is currently placed around ₹2127.