TATACHEM

Breaks Key Support – Further Downside Towards ₹920 Likely

On 24th July 2025,

stock price fell by 2.64% and closed below its 200-day moving average, which is a key long-term support level. This is a negative sign for the stock and suggests that sellers are in control. The 200-day moving average is an important level that often acts as strong support or resistance. When a stock closes below it, it shows weakness and increases the chances of further decline. Interestingly, on 23rd July, just a day before this fall, the candlestick formed outside the upper Bollinger Band. This usually means that the stock had entered an overbought zone and was trading at higher-than-usual levels. Such a pattern often leads to a short-term reversal or correction, and that’s what we are now seeing. The strong fall after touching the upper band and the break below the 200-DMA confirms this weakness. Looking ahead, if the stock continues to remain under pressure, it may move towards the next support level around ₹920. Traders and investors should be cautious for now and wait for signs of recovery before making any new buying decisions.