🪑 Bharat Seats Ltd. – Correction Following Bearish RSI Divergence

Bharat Seats Ltd. recently showed a textbook case of a bearish RSI divergence, followed by a price correction. Despite maintaining a strong uptrend for several weeks, momentum indicators signaled early exhaustion, leading to a pullback that is now testing short-term support zones. 🔹 Chart Observations RSI Divergence: The stock made higher highs in price, while RSI formed lower highs, confirming a bearish divergence — a classic sign of weakening momentum before reversal. Price Action: After peaking near ₹239, the stock has witnessed steady selling pressure and is now trading below the 30-day moving average, suggesting a loss of short-term trend strength. Support Zones: Price is currently near a support region around ₹187–190, which coincides with a previous breakout level. Volume: Declining volume during the fall indicates a controlled pullback rather than panic selling. OBV: On-Balance Volume remains stable, suggesting that long-term accumulation hasn’t yet reversed. 🔹 Interpretation The bearish RSI divergence accurately preceded the correction phase. Going forward, holding the ₹187–190 zone becomes key for maintaining structural strength. A breakdown below this could extend the correction, while stabilization near this support could lead to base formation. 📢 Disclaimer: For educational and technical analysis purposes only; not investment advice. 👤 Rajneesh Sharma – SEBI Registered Research Analyst (INH000020332)