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Siemens witnessed its steepest fall in 30-day period, down 28%; what next?

Siemens stock outlook: This stock from the engineering and capital goods industry could slide by another 18% if the key supports at Rs 5,600 and Rs 5,400 are violated shows technical chart.

Photo: Reuters

Photo: Reuters

Rex Cano Mumbai

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Siemens stock has witnessed it’s steepest-ever fall in a 30-day period, down 28.2 per cent fall in the last one month. The stock from a high of Rs 8,036 on December 16, 2024, has tumbled to a low of Rs 5,769 hit today, January 14, 2025.  At present, the stock is now seen trading below the key moving averages on the daily chart; and the price-to-moving averages action is clearly negative for Siemens with the shorter-term moving averages now falling below the long-term averages. The 20-day Daily Moving Average (DMA) now stands at Rs 6,640; below the 50-, 100- and 200-DMAs, which stand at Rs 7,040, Rs 7,057 and Rs 6,905, respectively.  On the weekly scale, Siemens is seen trading below the 50-WMA (Weekly Moving Average) for the second straight week - a key monitorable level the stock had violated since May 2022. The 50-WMA now stands at Rs 6,554; above which stands the 20-WMA hurdle at Rs 6,996.  Given this background, is the fall overdone in Siemens stock or is more pain left?  Siemens  Current Price: Rs 5,811  Downside Risk: 18.7%  Support: Rs 5,600; 5,412  Resistance: Rs 6,400; Rs 6,640; Rs 6,900; Rs 7,000  Given the steep fall, key momentum oscillators on the daily scale are seen languishing in oversold zone. The stock may seek support around Rs 5,600 levels - the lower-end of Bollinger Bands on the daily chart. That apart, the long-term chart shows that the stock seems on course to test its 20-MMA (Monthly Moving Average) support at Rs 5,412. Siemens stock has respected the 20-MMA support since November 2020.  One of the key worrying aspects for the stock seems - a likely 'Death Cross' formation on the daily scale. The 50-DMA seems to be drifting towards the 200-DMA. A crossover on the downside qualifies as a 'Death Cross' Pattern; which in general is a bearish development for the stock. Hence, longer the stock spends time below the 20-DMA higher would be the chances of the 'Death Cross' formation. CLICK HERE FOR THE CHART  Another concern is observed on the weekly scale, wherein Siemens is seen trading alongside the lower-end of the Bollinger Bands. In case, the stock slips and trades consistently below Rs 5,800 levels, it can witness further downwards pressure, with a likely downside target around the 100-WMA at Rs 5,040 levels.  ALSO READ: When will stock markets recover? Check outlook, strategy  In the worst case scenario, Siemens could slide all-the-way to test the super trend line support on the monthly scale at Rs 4,726 levels - this implies a downside risk of 18.7 per cent. Siemens had given a breakout above the monthly super trend line way-back in May 2019; post which the stock witnessed an astounding 569 per cent rally in the following 5 and half years.  In case of pullback rally, the upside for the stock seems capped around Rs 7,000-mark; with interim resistance seen at Rs 6,400; Rs 6,640 and Rs 6,900 levels. 

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First Published: Jan 14 2025 | 2:13 PM IST

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