Bharat Financial Inclusion (₹1,140.2): Sell

Investors with a short-term perspective can consider selling the stock of Bharat Financial Inclusion at current levels. Following a medium-term uptrend, the stock recorded a new high which is also a 52-week high at ₹1,248 in early August. The stock subsequently changed direction triggered by negative divergence in weekly relative strength index and price rate of change indicator. Since then, the stock has been in a near-term downtrend.

On Thursday, the stock fell about 1.9 per cent breaching a key support at ₹1,150. The stock has slumped 4 per cent this week, decisively breaching its 21- and 50-day moving averages. It now trades well below these averages.

The daily relative strength index feature in the bearish zone and the weekly RSI hovers in the neutral region. Both the daily and weekly price rate of change indicator feature in the negative territory implying selling interest.

The short-term outlook is bearish for the stock. Traders with a short-term view can sell the stock with a stop-loss at ₹1,165 levels. Targets are ₹1,100 and ₹1,070.

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

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