NCC (₹88.4): SELL
The outlook for the stock of NCC Ltd is bearish. The stock tumbled 3.4 per cent on Tuesday breaking below a key near-term support level of ₹90. The sharp fall on Tuesday indicates the resumption of the downtrend that has been in place since January. Cluster of resistances are poised in the ₹90-95 region. Intermediate bounce to this resistance zone is likely to find fresh sellers coming into the market.
The outlook will turn positive only if the stock of NCC breaks above ₹95 decisively. But such a strong move looks unlikely at the moment. There is a strong likelihood of the stock falling to ₹80 in the near-term. If the stock manages to bounce from ₹80, a relief rally to ₹85 or ₹88 is possible. But a strong break below ₹80 will increase the possibility of the down move extending to ₹70.
Traders can go short at current levels and also accumulate at ₹90. Stop-loss can be placed at ₹93 for the target of ₹80. Revise the stop-loss lower to ₹86 as soon as the stock moves down to ₹84.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)