Investors with a short-term perspective can sell the stock of Indian Bank at current levels. The stock tumbled 6 per cent accompanied by above average volume on Monday, breaching a key support at ₹250.

Significant medium-term resistance at ₹290 had capped the stock’s upside in early April and again in early June this year. The stock subsequently reversed direction in early June triggered by negative divergence in the daily relative strength index. Since then, the stock has been in a short-term downtrend.

While trending down, the stock breached its 21- and 50-day moving averages and also closed below the 200-day moving average. The daily relative strength index has entered the bearish zone from the neutral region and the weekly RSI is on the brink of entering the bearish zone from the neutral region. Besides, the daily as well as weekly price rate of change indicators feature in the negative territory implying selling interest.

Overall, the short-term outlook is bearish for the stock. It can continue to trend down and reach the price targets of ₹231.5 and ₹226.5 in the ensuing trading sessions. Traders can sell the stock with a stop-loss at ₹247.

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

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