Technical Analysis Hyundai Motor India Ltd.

The stock

looking at the daily timeframe the stock is currently in a strong downtrend. After touching a major peak near the 2850 - 2900 zone the price has consistently formed a lower high lower low pattern. This shows that sellers have been dominating the chart for the past few months. Crucial Support the stock recently found a floor and showed some buying interest around the 1700 - 1750 zone before bouncing to the current level of 1844.50. This makes 1700 a very important support level to watch. Immediate resistance if the stock tries to move up it will face heavy resistance around the 1950 to 2000 area. The 2000 mark is a strong psychological barrier. The volume bars during this recent small bounce are quite average. We aren't seeing massive institutional buying volume yet which means a strong trend reversal is not fully confirmed. For short-term buyers it is best to avoid fresh entries right now and wait for a strong breakout above the 1950 to 2000 resistance zone. If you still choose to take a risk and buy at the current level keeping a strict stop-loss below 1700 is absolutely necessary. For existing holders protecting your capital is the main priority, so you must also keep a firm stop-loss at 1700 to avoid deeper losses. If the stock manages to bounce back use the 1950 to 2000 area to reduce or exit your position as heavy selling pressure is expected to return there. Technical analysis is based on historical patterns and does not guarantee future results. Always use a Stop-Loss to manage your risk.