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Investors with a short-term perspective can consider selling the stock of Rural Electrification Corporation at current levels. The stock fell 2.8 with a good volume breaching a key medium-term support at ₹150 on Tuesday. Ever since marking an all-time high at ₹223 in May 2017, the stock has been in an intermediate-term downtrend.
A key resistance at ₹183 capped the stock’s upside in early November and the stock resumed its downtrend subsequently. It breached the 200-day moving average and continued to decline. The medium-term trend is also down for the stock. It trades well below the 50 and 200-day moving averages. The daily relative strength index feature in the bearish zone and the weekly RSI has entered this zone from the neutral region. Both the daily and weekly price rate of change indicators feature in the negative territory implying selling interest.
The short-term outlook is bearish for the stock of Rural Electrification Corporation. It can continue to decline and reach the price targets of ₹141 and ₹138 in the coming trading sessions. Sell the stock with a stop-loss at ₹150.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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