Chart Focus: Exide Industries: Sell

Investors with a medium-term perspective can sell the stock of Exide Industries (₹188) at current levels. Last week, the stock tumbled 8 per cent with good volume, breaking below a key long-term support at ₹200. This fall has strengthened the intermediate-term downtrend that has been in place since registering a new high at ₹304 in August 2018.

While trending down, the stock had conclusively breached a key base at ₹235 in January this year. Both medium as well as the short-term trends are down for the stock. The recent fall has also breached the 200-day moving average line poised at around ₹205. The stock hovers well below its 50- and 200-day moving averages.

 

 

 

The daily relative strength index has entered the bearish zone from the neutral region and the weekly RSI continue to feature in the bearish zone. Besides, the daily as well as weekly price rate of change indicators feature in the negative territory, implying selling interest. With a downward break-out of the long-term support, the medium-term outlook is bearish for the stock. The stock can continue to trend down and reach price targets of ₹170 and ₹160 levels over the medium term. Investors with a medium-term perspective can sell the stock with a stop-loss at ₹203 levels.

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