BF Utilities (₹409.2)

Investors with a short-term perspective can consider selling the stock of BF Utilities at current levels. After a medium-term uptrend from the August 2017 low of ₹313, the stock encountered a key long-term resistance at ₹600 in early January this year. However, the stock changed direction from that resistance level and has been in a short-term downtrend. While trending down, the stock breached its key support at ₹500 in late January which later became a key resistance. Near-term trend is also down for the stock.

On Wednesday, the stock tumbled 4 per cent with above average volume breaking below a vital support level of ₹430. Moreover, this fall has breached its 200-day moving average and trades well below it. This decline has mitigated the stock’s medium-term uptrend.

The daily relative strength index has entered the bearish zone from the neutral region. Both the daily and weekly price rate of change indicators feature in the negative territory implying selling interest.

Short-term outlook is bearish for the stock. It can extend the downtrend and reach the price targets of ₹393 and ₹384. Traders can sell the stock with a stop-loss at ₹418.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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