Laurus Labs Ltd. – Technical Analysis and OutlookAs of the latest price action, Laurus Labs Ltd. is trading at ₹461.45 , down by 1.87% on the day. The stock has shown an interesting pattern of movements within a defined upward sloping channel, which has been respected well over the past year.
Key Technical Analysis:
Channel Support & Resistance:
The stock has been moving within a clear ascending channel. The upper boundary of the channel has acted as resistance, while the lower boundary has provided strong support.
Recently, the price touched the upper end of the channel, leading to a rejection, and is now moving downward.
Support Levels:
[
b]₹480: The recent highs near this level represent a key resistance. A break above this will challenge the upper boundary of the channel.
₹500 : Psychological resistance that the stock will face if momentum picks up.
Volume Profile:
The volume profile indicates strong interest in the ₹420–₹440 range, suggesting a likely bounce if the stock retraces to this area.
There is lower volume at the higher end of the range (₹480+), which implies a breakout beyond this level could be explosive if supported by strong buying interest.
RSI (Relative Strength Index):
The RSI is trending downwards, indicating that the stock is losing momentum and is approaching oversold territory. This suggests a potential reversal may occur near the support zones, providing a possible buying opportunity.
Outlook and Scenarios:
Bounce from Support:
If the stock respects the support zone between ₹440–₹450, it may rebound and reattempt to test the ₹480 resistance. A successful bounce here would continue the bullish trend within the channel.
Breakdown from Channel:
If the price fails to hold the ₹440 support and breaks below the ascending channel, the next target would be the ₹420 level, where significant buying interest is present.
Channel Continuation:
The stock is still within a well-defined channel, and the current pullback seems to be a natural correction within the broader uptrend. As long as the stock holds the lower boundary of the channel, the bullish bias remains intact.
Conclusion:
Laurus Labs is at a critical juncture as it approaches key support within a rising channel. Investors should closely watch the ₹440–₹450 zone for signs of a reversal. A bounce from this level could lead to a retest of ₹480 and potentially higher. However, failure to hold this support may push the price toward the ₹420 zone, which represents a strong buying opportunity based on historical volume accumulation.
