Technical Analysis

Delta Corp (₹234.4): Sell

Gurumurthy K BL Research Bureau | Updated on January 22, 2019 Published on January 22, 2019

The outlook for the stock of Delta Corp is negative. The stock has been on a free fall over the last one week. It fell over 3 per cent on Tuesday breaking below a key support level of ₹240. The stock has tumbled over 9 per cent in the last one week. Cluster of supports are poised in between ₹241 and ₹245 which can cap the upside in the short term. Intermediate bounce to this resistance zone is likely to find fresh sellers coming into the market. A fall to ₹225 is likely in the near term. A further break below ₹225 will then increase the likelihood of the stock extending its downmove towards ₹210 and ₹200 over the short term.

Traders can go short at current levels and also accumulate at ₹238 and ₹242. Stop-loss can be placed at ₹252 for the target of ₹203. Revise the stop-loss lower to ₹228 as soon as the stock moves down to ₹223. The downside pressure will ease only if the stock breaches ₹245 decisively. The next targets are ₹260 and ₹270. But such a strong upmove breaking above ₹245 looks unlikely at the moment.

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

Read the rest of this article by Signing up for Portfolio.It's completely free!

What You'll Get

This article is closed for comments.
Please Email the Editor