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The stock of SREI Infrastructure Finance tumbled 4.7 per cent with good volume, breaching a key psychological support level of ₹100 on Wednesday. This fall gives traders with a short-term perspective an opportunity to sell the stock at current levels.
The stock has been in a medium-term downtrend since marking a 52-week high of ₹137.7 in late July this year. Moreover, short-term trend has been down since encountering a key resistance at around ₹120 in late October. While trending down, the stock breached its 50 and 200-day moving averages and currently trades way below them. Both the daily and weekly price rate of change indicators feature in the negative territory implying selling interest. The daily relative strength index hover in the bearish zone and the weekly RSI is on the brink of entering the bearish zone from the neutral region.
Overall, the short-term outlook is bearish for SREI Infrastructure Finance. The stock can extend its decline and reach the price targets of ₹92 and ₹90 in the upcoming trading sessions. Traders can sell the stock with a stop-loss at ₹98.5 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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