Central Bank of India (₹77.6)

The outlook is bearish for the stock of Central Bank of India. The stock fell for the tenth consecutive day and had closed 5.5 per cent lower on Monday. The strong up move that had begun from the August low of ₹70.6 halted at a high of ₹103.8 on September 12. The stock has been on a free fall since then and has plummeted 25 per cent from this high.

There is room for the stock to extend this down move in the coming days as well. Resistance is at ₹82 which is likely to cap the upside in the short-term. Intermediate bounce to this resistance, if seen, can attract fresh sellers into the market. A fall to ₹70 or ₹69 is possible in the coming days. Traders can go short. Stop-loss can be placed at 83.5 for the target of ₹70. Accumulate on rallies at ₹80. Revise the stop-loss lower to ₹75 as soon as the stock moves down to ₹73. The region between ₹70 and ₹69 is a strong support which can halt the current downtrend. The possibility of an upward reversal from the ₹70-₹69 support zone cannot be ruled out.

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

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