Technical Analysis

Dabur India (₹387.8): Sell

Yoganand D BL Research Bureau | Updated on June 18, 2019 Published on June 19, 2019

Investors with a short-term perspective can consider selling the stock of Dabur India at current levels. Since encountering a key resistance at ₹460 in early February, the stock has been in a medium-term downtrend. While trending down, the stock had breached a key support at around ₹420 and continued to trend downwards.

Following a corrective up-move in the month of May, the stock encountered resistance at ₹410 in early June and resumed the downtrend triggered by negative divergence in the daily relative strength index. On Tuesday, the stock declined 3 per cent accompanied by above average volume breaching the 21- and 50-day moving averages.

The daily relative strength index is on the brink of entering the bearish zone from the neutral region and the weekly RSI hovers in the neutral region. Both the daily and the weekly price rate of change indicators feature in the negative terrain implying selling interest.

The short-term outlook is bearish for the stock. It can continue to trend downwards and reach the price targets of ₹372 and ₹364 in the upcoming trading sessions. Traders can sell the stock with a stop-loss at ₹396.

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

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