Technical Analysis

Mahindra CIE Automotive (₹229): Sell

Yoganand D BL Research Bureau | Updated on March 25, 2019 Published on March 26, 2019

  Investors with a short-term perspective can sell the stock of Mahindra CIE Automotive at current levels. On Monday, the stock fell 4 per cent breaching its 21- and 50-day moving averages. Since registering a 52-week high at ₹301.8 in early November 2018, the stock has been in a medium-term downtrend.

While trending down, the stock has decisively breached the key support in the band between ₹245 and ₹250 in January which had become a key resistance thereafter. Following a corrective rally, the stock had encountered resistance in ₹245-250 band last week and resumed its medium-term downtrend. The recent fall has strengthened the stock’s downtrend.

The daily as well as weekly relative strength indices are on the brink of entering the bearish zone from the neutral region. Moreover, both the daily and the weekly price rate of change indicators are featuring in the bearish zone implying selling interest. The short- and medium-term trends can continue in the ensuing weeks. Targets are ₹220 and ₹215. Traders can sell the stock with a stop-loss at ₹234.

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

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