Technical Analysis

Jai Corp (₹149.2): Sell

BL Research Bureau | Updated on May 03, 2018 Published on May 03, 2018

Investors with a short-term perspective can sell the stock of Jai Corp at current levels. The stock has been in a medium-term downtrend since encountering a key resistance in the band between ₹215 and ₹220 in early January this year. While trending down, the stock decisively breached a key support level of ₹170 in early February. This support had subsequently turned into a significant resistance and capped the stock’s rally during late April.



After testing the resistance at ₹170 the stock resumed its medium-term downtrend two weeks ago. Further, witnessing selling pressure, the stock fell 3.6 per cent with above average volume on Thursday, breaching its immediate support at ₹155 as well as its 21-day moving average. Both the daily and weekly price rate of change indicators feature in the negative territory implying selling interest. The daily as well as weekly relative strength indices are charting downwards in the neutral region backing the downtrend.

The short-term outlook is bearish for the stock of Jai Corp. It can continue to decline and reach the price targets of ₹143 and ₹140 in the upcoming trading sessions. Traders can sell the stock with a stop-loss at ₹152.5.

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

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